Alberta's new carbon tax will bring in three billion dollars a year, but is supposed to rebate some of the money back to taxpayers. Alberta Party Leader Greg Clark says for people to buy in the tax should be truly revenue neutral, and he would like to see the government reduce other taxes.

"We want people to keep more of their hard earned money by reducing personal income tax. We want to create an attractive investment climate for business by reducing business tax. So if you're taking money on one hand through a carbon tax by taxing things we don't want, you should be giving it back on the other hand by reducing personal and corporate tax."

Clark says he likes the idea of a carbon tax, because it creates an incentive to reduce emissions and creates an economic frame for companies to innovate and use technologies to avoid that cost.

Clark says giving the money back to Albertans through tax cuts would be less expensive to administer and would be fairer than a rebate. He says the provincial government has increased personal and corporate taxes while adding this tax, and their rebate program will not be giving the money back to Albertans equally.

"Right now is a very difficult time for people all over the province, and the last thing people need (is) more money coming out of their pockets. Especially at the gas pump, if it's not given back in other ways. Now the ND's, I think, are going to talk about some sort of rebate program. My issue with a rebate program is one, it's not truly revenue neutral. Secondly, it's very expensive to administer."

He says this is not what Albertans need, and it looks like this is a tax grab.

"I don't think that this tax in any way is revenue neutral. I think actually in a lot of ways it is a tax grab. They've increased personal tax. They've increased corporate tax, and they've given no indication that they plan to reduce either one when they roll out the carbon tax."

Clark says rebate programs pick winners and losers, then decide some people are more entitled to rebates than others. He says he would prefer to see Albertans receiving true tax cuts.