British Columbia is blessed to have thousands and thousands of people who combine both intelligence and common sense. These are people who look at what government puts out with a critical eye, always searching for better ways of doing things. One of those folks, Brian Nimeroski of Sooke, recently wrote a letter to the Victoria Times Colonist that bears repeating:
The world at large seems to be able to see through the argument of a carbon tax being revenue neutral or effective in terms of reducing greenhouse gases. In the case of B.C., the billion dollars of annual revenue projected from the tax has led to exciting thoughts of discretionary spending.
In the instance of paying for urban rapid transit, or just offsetting income-tax cuts, the carbon tax is a projected arrearage. Meanwhile, since the tax was imposed in 2008, greenhouse-gas emissions in the province have continued to rise.
In July 2012, the carbon tax increases by another 1.5 cents. In our budget submission to government, we requested that the tax be frozen or rolled back, pending a complete, independent review on its effectiveness. As we said:
With the original carbon tax legislation expiring after the scheduled July 1, 2012, increase, it is a natural time to pause and reflect on whether the tax has been a success. It has certainly been difficult for people living in the interior, north and rural B.C., where there are very few or no options to change their energy consumption habits.
British Columbia was the continent’s leader in bringing in a carbon tax, but three years later, no other jurisdiction has followed suit. Further increases would put British Columbia at an even bigger competitive disadvantage with neighbouring provinces and states—a carbon tax is best done in conjunction with other jurisdictions.
While technically neutral for government, carbon taxes are not neutral for families, businesses or people on fixed incomes. Families with active lifestyles pay more to drive and low‐income earners pay more to heat their homes. Fuel prices are skyrocketing—B.C. has the highest gasoline taxes in Canada.
Carbon taxes are supposed to lower carbon dioxide emissions, but the experience in Europe shows that almost never happens. European governments have imposed a garden variety of greenhouse gas (GHG) reduction measures since the early 1990s. Nevertheless, GHG emissions went up in Europe by 5 per cent between 1991 and 2005.
What did go down in that same period, though, were manufacturing jobs. Norway, Sweden and UK, for example, saw manufacturing jobs fall by 5.6 per cent, 18.5 per cent and 20 per cent respectively. GHG emissions, on the other hand, increased a whopping 62 per cent in Norway, 11.3 per cent in Sweden, and 2 per cent in the UK. A growing economy means higher GHG emissions, but energy taxes, especially those that hurt large manufacturers, kills jobs.
In British Columbia, any carbon emission decreases can be attributed to a slowing economy, not the carbon tax.
The carbon tax should be scrapped or at least frozen until a complete, independent review on its effectiveness is completed.
We were pleased that the all-party Select Standing Committee on Finance and Government Services agreed with us, and has recommended to Finance Minister Kevin Falcon that the carbon tax be capped. Capping it is the first step--coming to the realization that it hasn't worked is the second.
Is Canada Off Track?
Canada has problems. You see them at gas station. You see them at the grocery store. You see them on your taxes.
Is anyone listening to you to find out where you think Canada’s off track and what you think we could do to make things better?
You can tell us what you think by filling out the survey