B.C.'s finance minister wants to know if you are willing to pay even higher gasoline taxes to fund greenhouse gas (GHG) reduction subsidies. For sure it would cost more to drive to work or take the kids to soccer practice. What's not so certain is whether these subsidies would actually reduce emissions. It seems incredible, but at a time when the economy is booming and the province is experiencing large surpluses, the government is talking about raising gasoline taxes.
Taxpaying motorists still fuming over the current cost of gasoline may wish to send politicians a message. As part of the 2008 budget consultation process, B.C. households will receive a survey asking, among other things, what tax changes might be acceptable to discourage GHG emissions. Specifically, the finance minister is looking for permission to increase gas taxes, so you may want to take the time to respond to this survey.
B.C. already has low GHG emissions and most proposals floating around - pardon the pun - to reduce them further are unlikely to succeed. Remember, the federal Liberals spent about $6 billion on climate change reduction projects, and GHG emissions increased by 33%. Now, the Conservative government is spending $10 billion, even though Prime Minister Stephen Harper is on record saying the Kyoto Accord, the agreement that committed Canada to big GHG reductions, "is a money sucking socialist scheme." When GHGs became a hot political topic, the prime minister did an about-face on Kyoto. Here in B.C., tax increases and subsidies to pet projects seem to be a product of a similar about-face.
B.C.'s GHG emissions, at about 67 million tonnes (CO2 equivalent) in 2004, make B.C. the fifth largest GHG emitting province, well below first-place Alberta, at about 235 million tonnes. The sixth largest GHG emitting province, Nova Scotia, emits 23 million tonnes of GHGs, but Nova Scotia only contributes 2.3% to Canada's economy; B.C. contributes 12%. The B.C. government's goal is to reduce GHG emissions by 33% from current levels by 2020. Given B.C.'s already low GHG level, the road to lower GHGs is paved with tax hikes, subsidies and lower economic activity.
About 40% of B.C.'s GHG emissions come from transportation, so it might seem obvious that by raising taxes to discourage driving, GHG emissions could be reduced. Yet, about 33% of price of gasoline is already tax, and people are still driving. Data from the Canadian Taxpayers Federation's 2007 Gas Tax Honesty Report show parents still go to work and kids still go to soccer practices, but family budgets increasingly run on empty. Families may have less money in their pockets and bank accounts to spend on other things, but they do not drastically change their energy consumption habits. Of course, at some point, price may change behaviour, but are we really willing to sacrifice our standard of living when no study to-date has positively attributed all or part of climate change to man-made causes
Government efforts to reduce greenhouse gas emission will cost taxpayers and consumers a bundle for questionable benefits. The 2008 budget consultation process will give you the opportunity to voice your opinion on government spending priorities. We all care about the environment, but technological advancements that come with economic growth lead to a cleaner environment, not unfettered spending on ill-conceived projects.
The deadline for submissions to the Budget Consultation Panel is Friday, October 19, 2007. Call 1-877-428-8337 to find out how to make your voice heard.
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