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Thread: BC Climate Change refund? ( new B.C. Carbon Tax )

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    Default BC Climate Change refund? ( new B.C. Carbon Tax )

    I read a blurb in the free paper today that all BC residents who files in 2006 or 2007 are getting a $100 'refund' for something related to climate change...googling isn't telling me anything. Anyone know what that's about?

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    Default Re: BC Climate Change refund?

    I believe that this relates to the recently introduced BC 'carbon tax' ...



    (snip)"With the release of the annual budget today, provincial officials just announced that they will levy a carbon tax to help drive down emissions. Even better, the carbon tax will be a tax shift -- surely the best instance of tax shifting in the Northwest:

    Finance Minister Carole Taylor vowed Tuesday that all money collected through the new tax will be returned through a package of tax cuts and credits.

    Done correctly, the tax shift will send a clear price signal that discourages emissions, even while it promotes progressive tax policy. And what do you know?

    Corporate and personal income tax rates will drop to help make the tax revenue neutral, and lower-income British Columbians will receive an annual climate action credit of $100 per adult and $30 per child.

    In fairness, without futher details, we can't know for sure whether the tax shift will adequately address questions of climate fairness. Still, it's an awfully promising start.

    Details of the plan:

    Taylor said the new carbon tax will begin July 1, starting at a rate that will have drivers paying about an extra 2.4 cents per litre of gasoline at the pumps. The tax -- which will apply to virtually all fossil fuels, including gasoline, diesel, natural gas, coal, propane and home heating fuel -- will then increase each year after that until 2012, reaching a final price of about 7.2 cents per litre at the pumps. After that, Taylor said, it will rest with the government of the day to decide if the tax rate should change any further.

    For non-metric Americans, this means...

    ...the tax rate will start at 9.1 cents per gallon and rise to 27.3 cents in 2012. Kind of expensive, right? But that's the point: to discourage carbon pollution. And in any event, the money gets funneled right back to individuals and businesses.

    Today's announcement makes BC the clear leader in North American climate policy. No one else is even close. California, Oregon, and Washington are all waffling on much milder prescriptions. (Quebec also has a carbon tax, but it is very modest.)"(snip)


    In a nutshell, BC has enacted a new tax on individuals, businesses and industries that is (somewhat) proportional to their use of fossil fuels. This translates into BC residents paying more at the gas pump, paying more in their utility bills, paying more at local restaurants / stores etc. as a result of this additional (but hidden) tax. However, BC politicians have decided that low income BC residents should receive a $100 'refund' from the province to offset the first $100 worth of (hidden) BC carbon tax that they have paid (without even noticing).

    I could not find any details as to the income level the BC politicians selected for cutting off the $100 'refund'. I also couldn't find any details in regard to the typical amount a BC resident is required to spend because of the new 'carbon tax'. However, some guesswork math would tend to indicate that the new 'carbon tax' has increased the price of BC gasoline / utility bills / direct energy purchases by 2% in 2008 ... which will rise to 6% by 2012.

    It is unknown at this point what sort of price increases will be passed on by BC restaurants, manufacturers, retailers etc. in order to cover the additional cost of the BC 'carbon tax' which they must now pay. According to some sources, BC businesses and industries will wind up paying 2/3rds of the new 'carbon tax', while individuals will only pay 1/3rd directly (due to the $100 'refund' to lower earning BCers). However, individual customers of BC businesses will in fact wind up paying higher prices in order to cover the BC businesses' now higher operating costs.



    (snip)"British Columbia 's Liberal Government introducing a Carbon Tax has Citizens fuming over what is seen as a Massive Tax Grab, contrary to what Politicans say to the media. Past and present Polls shows an overwhelming 85% of British Columbians were dead set against the new Carbon Tax. Time will tell if benefits from this Carbon Tax will each the consumer or in environmental programs.

    Though touted as a step in the right direction by Environmental groups, some detractors feel that most likely this Carbon Tax money will be used to hire a new bureaucracy to dispense what little money is left over of which the taxpayer and environment may see very little."(snip)

    (snip)"To help people adjust to the cost of the tax -- which promises to achieve about 7.5 per cent of the government's legislated reductions by 2020 -- all British Columbians will receive a one-time $100 cheque this June.

    "We want to bring in the benefits first," said Taylor.

    Corporate and personal income tax rates will drop to help make the tax revenue neutral, and lower-income British Columbians will receive an annual climate action credit of $100 per adult and $30 per child.

    Overall, the government estimates the carbon tax will bring in revenues of about $1.85 billion over the first three years -- all of which it says will be returned to businesses and individuals.

    Estimates suggest businesses will pay two thirds of the carbon tax, and will receive only one third of the refunds. By contrast, individuals are expected to pay one third, while receiving two thirds of the credits."(snip)


    there is also some concern at the national level that the BC 'carbon tax' , added to BC's already high tax burden, will serve to drive businesses and jobs out of BC i.e. across the Alberta border. If so, then BC versus Alberta could develop a scenario resembling California versus Nevada in the USA. From the same link ...

    (snip)"Niels Veldhuis of the Fraser Institute also took issue with the plan.

    "This was a lost opportunity for British Columbia in terms of improving the investment climate," he said.

    "We had a real and historic opportunity to improve our investment climate, to ensure our prosperity going forward by aggressively reducing business taxes and personal taxes."

    For example top earners in B.C. pay taxes almost 50 per cent higher than their counterparts in Alberta, he said.

    Instead of reducing taxes they chose to "change the mix," he said."(snip)
    Last edited by Melonie; 06-01-2008 at 07:55 AM.

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    Default Re: BC Climate Change refund? ( new B.C. Carbon Tax )

    Thanks Melonie! Works for me...I don't drive and have uber-low utility bills, so I'll betcha the $100 will more than balance anything extra I've paid. Assuming I'm 'low-income' enough

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    Default Re: BC Climate Change refund? ( new B.C. Carbon Tax )

    ^^^ probably true in terms of DIRECT payments of the 'carbon tax' at the gas pump, to your utility companies, etc. However, this is probably not true in terms of the higher prices you are now paying at local restaurants / stores / businesses, who will be raising prices to you in order to cover the higher 'carbon tax' costs added to THEIR utility bills / fuel bills / shipping costs etc. Also don't forget that this year's 2% 'carbon tax' will increase every year between now and when it reaches the full 6% rate in 2012 !

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