Greens would price carbon at $50 a tonne under tax-shifting plan

A so-called "tax-shifting" policy bears resemblance to a Liberal plan to be announced Thursday by party leader Stephane Dion, but with two key differences.

Carbon-dioxide emissions would be priced at $50 per tonne - likely far higher than the Liberals - and the Greens would tax gasoline at the pumps. Dion has promised no additional tax at gas pumps.

The Green party says its plan would initially add 12 cents per litre to gasoline prices for motorists, and three cents per kilowatt hour to the cost of electricity from coal.

The Greens estimate their carbon-tax plan would raise $40 billion each year. Expected hikes in the price of gasoline and coal-fired electricity would be offset through income-tax reductions.

There would also be a cap-and-trade system for the coal-fired electricity sector.

"This is about taking from pollution and giving to people," said Green party Leader Elizabeth May.

"It's a new, modern Robin Hood approach. We are going to take from pollution and give to Canadians."

But the Liberals quickly sought to distance their carbon plan from the Greens'.

Liberal environment critic David McGuinty called the Greens' carbon pricing "excessive" and chastised the plan for not gradually phasing in a carbon tax.

"It's unfortunate the Green party has gone that far," he said.

"I think what we're going to present tomorrow is going to be a very middle-of-the-road and very, very realistic plan going forward."

The Liberals have been slow to unveil details of their carbon plan. That has created a vacuum the Conservatives have been all too happy to fill, painting the Liberal plan as a massive tax grab.

Glen Hodgson, chief economist for the Conference Board of Canada, says the Greens' plan would benefit provinces that rely on cleaner hydro-electricity and cost provinces that depend more heavily on oil and coal for electricity.

"That'll matter a lot in the thermal-power provinces (such as) Ontario, Saskatchewan, Alberta," he said. "Not so much in Quebec or Manitoba."

The Greens handed out samples of how their plan would affect Canadians of different incomes living across the country. Under the plan:

-A single-income, upper-middle-class family in Ontario earning $140,000 would save $1,707.

-A double income, upper-middle-class family in British Columbia earning a combined $140,000 would pay an extra $223.

-A double income, middle-class family in B.C. earning a combined $65,000 would pay an extra $172.

-A double income, rural family in Nova Scotia earning a combined $50,000 would pay an extra $94.

The party is also proposing measures to offset the effects of a carbon tax on low-income and rural Canadians.