The question is where does the Liberal's carbon tax revenue go?
The Government of Canada does not keep any direct proceeds from pollution pricing. All direct proceeds are returned to the province or territory of origin in the following way:
=> For those jurisdictions that have voluntarily adopted the federal system, direct proceeds are returned to the governments of those jurisdictions.
=> For those provinces that do not meet the federal stringency requirements—Ontario, Manitoba, Saskatchewan and Alberta— approximately 90 per cent of direct proceeds are returned to residents of those provinces through Climate Action Incentive payments. The other 10 per cent is used to support small businesses, schools, universities, municipalities, and Indigenous groups.
The federal government has specified Climate Action Incentive payment amounts for 2021 for the four provinces mentioned above. People can claim these payments through their 2020 personal income tax returns.
separate from the ~90% tax based rebate Ontario residents collectively receive, an example of where the Liberal federal government has applied a portion of Ontario's 10% revenue return:
Government of Canada supports cleaner, healthier classrooms across Ontario by reinvesting carbon pollution pricing revenues