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For the Record

THE FACTS ON B.C.’S REVENUE NEUTRAL CARBON TAX

July 1, 2009
Ministry of Finance
 

Letters to the Editor

Opinion Editorials

Here are the facts on B.C.'s revenue-neutral carbon tax.

  • Every dollar raised by the carbon tax is returned to individuals and businesses through tax reductions.
  • As a result of the carbon tax, individual British Columbians have seen their personal provincial income taxes reduced by five per cent on taxable income up to $70,000. Individual taxpayers pay the lowest provincial income tax on earnings up to $116,000.
  • Implementing the carbon tax means that B.C. has also been able to reduce the general corporate income tax rate from 12 to 11 per cent and the small business corporate income tax rate from 4.5 per cent to 2.5 per cent.
  • With future planned federal and provincial tax cuts the corporate income tax rate in B.C. will be the lowest in the G7 group of countries, and B.C.’s small business taxes will be the lowest in Canada by 2012.
  • Last summer, British Columbians received a $100 Climate Action Dividend that they could use to reduce their carbon emissions.
  • Industry is required to pay the carbon tax on the purchase and use of fossil fuels the same as everyone else and they also pay tax at the same rate. For example, the oil and gas industry pay the carbon tax on all combustion of fossil fuels, including flaring, and the cement industry pay the tax based on the coal and tires they burn in the production of cement. 
  • The carbon tax applies to emissions from burning fossil fuels, which accounts for an estimated 77 per cent of total emissions in the province.
  • B.C. is part of the Western Climate Initiative with Manitoba, Ontario and Quebec, as well as seven US states including California. WCI is working to develop a cap and trade system. The carbon tax will be integrated into any cap and trade system to avoid unfairness and double taxation.
  • An annual Climate Action Tax Credit also increased by five per cent on July 1, 2009. That means low-income families and individuals will be eligible for $105 per adult and $31.50 per child annually. The credit is paid quarterly.
  • Even small actions like reducing driving distance 10 km a week and turning the thermostat down an extra two degrees at night can lead to dramatic savings.

Letters to the Editor

January 15, 2009
Letter to the Editor
INCOME TAX CUTS AND CARBON TAX
By Colin Hansen
Minister of Finance
Submitted: Prince George Citizen
Status: Published January 16, 2009
I want to respond to a recent column by Todd Whitcombe. Dr. Whitcombe said he "wanted to write something that was in praise of the government's efforts around the environment because there are many steps and measures that they have undertaken in the past year that are a step in the right direction," yet he took exception to the revenue-neutral carbon tax. [Read More]

January 9, 2009
Letter to the Editor
PROPERTY ASSESSMENT ROLL FOR 2009
By Kevin Krueger
Minister of Small Business and Revenue
Submitted: Vancouver Sun
Status: TBC
I would like to respond to Don Cayo’s articles regarding the 2009 assessment roll.  Our government is committed to fair and equitable treatment for all property owners. The decision to adjust all classes of property assessments was made in consultation with BC Assessment for the best interests of all British Columbians. [Read More]

July 3, 2008
Letter to the Editor
REVENUE-NEUTRAL CARBON TAX CUTS GHG'S, PUTS MONEY BACK IN YOUR POCKET
By Barry Penner
Minister of Environment
Submitted: Alberni Valley News
Status: Published July 3, 2008
In a desperate effort to pick up some votes, NDP MLA Scott Fraser has contradicted leading economists and environmentalists, as well as his own party, by playing down the importance of putting a price on pollution in telling BC Ferries customers that the NDP would axe the carbon tax if elected next May (Corporate Interests Exempt From Tax, July 1, 2008). [Read More]

June 30, 2008
Letter to the Editor
PROVINCE SUPPORTS TRUCKERS
By Kevin Falcon
Minister of Transportation
Submitted: The Province
Status: Printed July 4, 2008
Re: "Truckers need help," Province editorial June 29
As your editorial states, trucking is the lifeblood of our provincial economy, and reducing greenhouse gases from trucks is a goal we all share. Global warming is the challenge of our generation; taking action means we all need to do our part. [Read More]

June 30, 2008
Letter to the Editor
CARBON TAX FAIR FOR ALL
By Colin Hansen
Minister of Finance
Submitted: Province
Status: Not Published
I would like to take the opportunity to clarify some information in Michael Smyth's recent column on the carbon tax and industry ("Loopholes offer sweet deal for big polluters," June 29). Let me be clear, industry is not exempt from the carbon tax. Industry is required to pay the carbon tax on the purchase and use of fossil fuels the same as everyone else – and they also pay the tax at the same rate. [Read More]

June 30, 2008
Letter to the Editor
CARBON TAX A GOOD DEAL FOR BRITISH COLUMBIANS
By Colin Hansen
Minister of Finance
Submitted: Prince George Citizen
Status: Not Published
I would like to take the opportunity to put into perspective Todd Whitcombe's column of June 30, "Numbers show carbon tax a raw deal". By putting a price on carbon emissions, we create an economic incentive for British Columbians to make their own choices of how to reduce their dependence on fossil fuel. Professor Whitcombe assumes that people cannot change their behaviour. I believe he is far too pessimistic. [Read More]

June 29, 2008
Letter to the Editor
CARBON TAX GOOD FOR B.C., PUTS MONEY BACK IN YOUR POCKET
By Barry Penner
Minister of Environment
Submitted: The Province
Status: Not Published
The NDP's flipping and flopping on the issue of carbon taxes smells fishy. In a desperate effort to catch some votes, the NDP's Environment Critic contradicted leading economists and environmentalists, as well as his own party, by playing down the importance of putting a price on pollution ("Academics Get Behind Carbon Tax," Sunday Province, p. A4) [Read More]

June 25, 2008
Letter to the Editor
NDP LASHES GAS TAX
By Kevin Falcon
Minister of Transportation
Submitted: Surrey/North Delta Leader
Status: Published July 4, 2008
Re: “NDP lashes gas tax,” June 23, 2008
I'm surprised the NDP has the nerve to show their face to motorists in Surrey. This is the party that opposes the twinning of the Port Mann Bridge. [Read More]

June 19, 2008
Letter to the Editor
ALL SECTORS OF B.C. WILL DO THEIR PART TO FIGHT CLIMATE CHANGE
By Barry Penner
Minister of Environment
Submitted: The Province
Status: Not Published
Michael Smyth was wrong when he suggested in his June 19 column that large industry will be exempt from the revenue neutral carbon tax. In fact, about 70 per cent of total carbon tax revenue will come from businesses who consume fossil fuels. [Read More]

Opinion Editorials

February 29, 2008
Opinion Editorial
ALL BRITISH COLUMBIANS BENEFIT FROM GREENER FUTURE
By Carole Taylor
Minister of Finance
Submitted: Vancouver Sun
Status: Not Published
I read with dismay the guest editorial in the Vancouver Sun on Friday morning, which argues that British Columbians from outside the Lower Mainland cannot benefit from a greener future for their children, cannot benefit from tax cuts and cash in their family bank accounts, and cannot benefit from the massive investment in infrastructure in all our communities that has been undertaken by this government. [Read More]