Canada To Scale Back Carbon Tax Plans -- The WSJ -- August 1, 2018

Canada can't build/expand a pipeline (Keystone XL; Line 3; TransMountain; Energy East). Canada's prime minister has said that Canada will have trouble attracting foreign investment if it can't even complete pipelines.

Well, it turns out Canada has another problem: the carbon tax.

From The Wall Street Journal: Canada scales back carbon-tax plans. Changes reflect increasing concern among businesses about global competition and the ability to draw investment into Canada.

Canada’s Liberal government is scaling back elements of its planned carbon-tax regime to address worries from the business community about global competition.

The amendments to the carbon-tax regime were relayed to business representatives last week.

Under the changes, industrial companies would now have fewer of their emissions—20% versus the original 30%—subject to the levy. The carbon tax takes effect next year, and starts at 10 Canadian dollars (US$7.68) a metric ton and rises gradually to C$50 a ton in 2022.

In their presentation, Canadian officials told business representatives the change was spurred by concerns over competitiveness.

Industry associations have warned the new carbon-pricing regime would hinder investment plans and put Canadian firms at a disadvantage—especially given President Trump’s push to repeal energy and environmental regulations to bolster U.S. energy production, and deep reductions in U.S. corporate tax rates.

Those worries have escalated, industry officials warn, with U.S. tariffs on industrial goods. Companies may be looking to locate as much production in America to avoid the tariff threat, business leaders and economists warns.

Had Hillary been elected, the discussion would have been entirely different.

"... 20% versus the original 30$ ..." -- nibbling around the margins. Won't make a big of difference. Canadian business leaders asked for complete relief from the carbon tax. Anything less will still discourage foreign investment. The government went into the negotiations with no intent of listening to the business groups. They threw them a bone "cutting back to 20% vs 30%." Won't make a bit of difference. The US cut corporate tax from 35% to 21%. The Canadians are adding corporate taxes.