>Indeed, most households will see a net loss resulting from federal carbon pricing under the HEHE plan in 2030-31 (Table 3-2). That is, their overall costs—which now include the federal levy and GST paid (fiscal impact) and lower employment and investment income (economic impact)—exceed the rebate and the induced reduction in personal income taxes arising from the loss in income.
Where's that money going? Administering the program? Being taken by the government as tax revenue?
From a pure fiscal standpoint, there is still a net gain to most households.
The net loss here is calculated by subtracting the "economic cost" of lost investment and jobs due to carbon pricing. This is kind of the point; you would probably expect industries that are more fossil fuel intensive to be taking a hit if carbon taxes are doing what we want them to do.
Where's that money going? Administering the program? Being taken by the government as tax revenue?