123 Main St.,Whoville, ON N0N 0N0Phone: (555) 555-5555House of CommonsOttawa, ON K1A 0A6Phone: (613) 955-5555

John Q. Doe

Member of Parliament, Any Riding—Somewhere

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Liberals will cut personal and corporate taxes by billionsof dollars a year. Every family will pay less income tax.

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Liberals will put a price on carbon emissions thatcontribute to climate change and fuels such as coal andnatural gas. There will be no new tax on gasoline at thepump.

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All money raised from polluters will fund the tax cuts forfamilies, companies and workers.

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Liberals will invest in renewable energy andconservation, helping everyone to cut their pollution. If you burn less, you pay less. This change in behaviourwill result in more energy efficient homes, appliances,cleaner cars, etc.

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Liberals will include everyone on this journey of hope.Our plan to fight poverty ensures that low-incomefamilies, singles and seniors are insulated from risingenergy costs.

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The Liberal plan will also include additional support forrural and Northern Canadians, who are subject to higherenergy costs. Liberals will provide specific assistance tooffset the higher price of carbon.

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Liberals know that cutting personal and corporate taxes,and getting serious about green technologies will attractinvestment and create thousands of new jobs.

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The Green Shift plan will be revenue neutral. This meansthat every penny raised in pollution taxes will be returnedto Canadians in tax cuts. This will be verified by theAuditor General, who will monitor the plan’s revenue-neutrality.

Liberals launch bold plan to address climate change

GreenGreenGreenGreenShift:Shift:Shift:Shift:

Liberal Leader StéphaneDion launched his party’sbold Green Shift plan inOttawa June 19. The planshifts taxes onto polluters,and gives all revenuesreceived back to Canadiansthough cuts to income taxesand other tax credits.

The John Q. Doe Report

John Q. Doe, Member of Parliament, Any Riding-Somewhere

The Liberal Green Shift is a forward-looking plan that isgood for the environment and the economy.It is powerful and simple: we will cut taxes on things wewant more of, such as income, investment and innovation.And we will shift those taxes to what we all want less of:pollution, greenhouse gas emissions and waste.Economists and environmentalists are virtually allagreed: if we are serious about combating global climatechange, we must put a price on greenhouse gas emissions.Pollution cannot be free. By recognizing that carbon has areal cost, we as a society will shift our energy use to cleaner,greener alternatives.This bold idea will also stimulate opportunities, leadingus to invest in technologies that will cut emissions andtransform our future. Whether we are talking about capturingand sequestering carbon from the oil sands, or developingnew forms of renewable energy, Canada must become aworld leader in these fields. The future is green, and if Canada is an innovator, Canadians will profit.The Green Shift phases in a cost for carbon dioxide,starting at $10 per tonne in the first year, and increasing to$40 per tonne in the fourth year. This will apply at thewholesale level on fossil fuels such as coal and natural gas.There will be no increase to tax on gasoline at the pumpbecause the existing ten-cent-per-litre excise tax is equal to aprice on carbon of $42 per tonne.An average household will pay $225 to $250 in directcosts in year four, mainly due to higher heating andelectricity costs. But this will be offset by lower incometaxes, a new child tax credit worth $350 per child per year,and other measures targeted at low- and middle-incomeCanadians, seniors, and other vulnerable Canadians.This plan cuts across ideologies of left and right.Proponents of a green tax shift for the whole of Canadainclude such diverse groups and individuals as theConference Board of Canada, environmental leader DavidSuzuki, and the Canadian Council of Chief Executives, toname but a few.Let us all work together to build a richer, fairer, greenerCanada!

Let’s build aricher, fairer,greener Canada

Green Shift offers tax savings for typical family

The Liberal Green Shift plan is not only good for theplanet; it’s good for your wallet too.The Green Shift tax cuts reward hard work. Under theplan, Liberals will cut the lowest income tax rate to 13.5percent from 15 percent. We will also cut income tax ratesfor middle-income Canadians to 21 percent from 22 percentand to 25 percent from 26 percent.This means by the fourth year of our plan, a familywith two children and a combined income of $20,000 willsave almost $2,400 on average; a family with two childrenearning $40,000 a year will save about $1,850; a familywith two children earning $60,000 will save over $1,300, aswill a family earning $80,000.Liberals understand that energy requirements are higherin rural Canada and in the North. Our plan recognizes theserealities and will provide specific assistance to ruralCanadians and Northerners through an annual Green RuralCredit worth $150 and boosting the Northern ResidentsDeduction to a new maximum of $7,000.In addition to the measures outlined in the Green Shift,a Liberal government will ease the tax burden on seniorsand low-income families through increases to the GIS, anew monthly Guaranteed Family Supplement andimprovements to the National Child Benefit Supplement.The Liberal Green Shift is a fundamental change in theway government operates – taking money out of thepolluters’ pockets and putting more money back in yours.

I believe theLiberal GreenShift is the rightway forward.

“We need to make realprogress in the fight againstthe climate change crisis, andat the same time make oureconomy more competitive. ”

Stéphane Dion, Liberal Leader

What are they saying?

“Mr. Dion's proposed carbon tax is a good example ofthe kind of policy Canada needs to fight climatechange.”

Marlo Raynolds – Executive Director, Pembina Institute

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“This policy represents a seismic conceptual shift inthe federal tax system, sending the message that theDion Liberals are prepared to re-invest in social andenvironmental policy in a creative way. This is asharp divergence from the Conservative agenda ofmarket-based social policy, and a climate changepolicy designed to expand Canada's dependence onand pollution from the oil industry. In the nextelection, finally, voters will have a clear choice tomake.”

Janice Harvey – Freelance Writer and Director of the Conservation Council of New Brunswick

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“I actually think that the way forward really is to havea carbon tax regime such as the Liberals' Green Shiftand then over the long run implement a cap-and-trade system as well…As I say, in broad brushstrokes, well done, Mr. Dion.”

Stephen Hazell – Executive Director, Sierra Club Canada

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“Carbon taxes are not a bad way to go in addressingglobal warming…I think most economists wouldprobably be generally favourable to them. It's aboutas efficient a way as is out there.”

Doug Porter – Deputy Chief Economist, BMO Capital Markets

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“The idea is sensible. There's a growing consensus todo something about emissions. We need to put aprice on carbon.”

Don Drummond - Chief Economist, TD Group

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“You can sort out politicians (and business people)who are serious about significant GHG reductions byasking a simple question: Who wants to put a priceon carbon and who doesn’t?“But the Liberals got the essence of a serious policyright: Tax the behaviour that pollutes, then use thatrevenue to reduce personal and corporate taxes.Bravo to the brave.”

Jeffrey Simpson - Columnist, Globe and Mail,June 20, 2008

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