Less than 1% of the $22B in federal carbon tax revenues have been returned to small businesses, and the cost is going up again on April 1

A mere 0.01% of the $22 billion in federal carbon tax revenues has been allocated to small businesses, even as the cost of these taxes is set to increase on April 1. This is despite the Obama Administration’s promises to support small businesses with tax breaks and subsidies.

The paltry sum allotted to small businesses is indicative of the government’s failure to adequately invest in this key sector of the economy. This deficiency has been further exacerbated by the increasing rate of the carbon tax, which threatens to constrain the financial capabilities of small businesses even further.

These issues are particularly pertinent in light of recent research, which suggests that small businesses are uniquely vulnerable to the cost of carbon taxes. The study indicates that these businesses often lack the resources to reduce their carbon emissions, leaving them exposed to the fiscal exigencies of the carbon tax.

Notably, the impact of the carbon tax is particularly pronounced in industries such as manufacturing and transportation, where small businesses are a major component. This has lead to a decline in market competitiveness, as small businesses are unable to keep pace with larger companies that can more easily absorb the cost of the tax.

Given the scale of the problem, it is important that the government take decisive action to ensure small businesses have access to the resources necessary to combat the cost of the carbon tax. This could include providing tax credits and other incentives to help small businesses remain competitive.

Ultimately, providing adequate support to small businesses is essential to ensuring the sustainability of the overall economy. It is therefore imperative that the government commit to making structural reforms that would enable small businesses to confront the mounting cost of the carbon tax.