The carbon tax will also indirectly increase the price of groceries by increasing the cost of transportation.
The carbon tax is undermining the authority of provinces to set their own taxes on other things.
Ottawa’s carbon tax is set to increase to $170 per tonne by 2030.
According to the PBO, 60 per cent of households in Alberta, Ontario, Saskatchewan and Manitoba will pay more in carbon taxes than what they receive in rebates.
The Trudeau government recently announced a federal grant of up $420 million to Algoma Steel.
Cutting emissions by 25 per cent would impose a permanent cost of about 2.0 per cent of GDP.
The plan introduces a new package of regulations including a renewable gas mandate.
A tax on businesses is paid by people who own the businesses.
The carbon tax will increase by $15 per tonne until it reaches $170 per tonne.
The higher carbon tax will cost Ontario more than 86,000 jobs and cause the province’s economy to contract by 1.9 per cent.