Across the board income tax relief, in British Columbia and now federally, will enhance the financial security of working families. Unfortunately, if that relief is undermined by a carbon tax, the newfound security will be lost.
As part of its pre-budget consultations the provincial government was out in October asking what sacrifices British Columbians were willing to make to reduce greenhouse gas emissions (GHGs). It would seem the people of B.C. did not respond as hoped, so the government is looking for a polling company to ask the question again. Why Because it appears the finance minister is bound and determined to get permission to hit gasoline with a carbon tax.
Carbon taxes tax fossil fuels such as gasoline for the carbon dioxide (CO2) they release into the atmosphere. Man-made CO2 is believed by some scientists to be responsible for climate change. There is plenty of evidence to the contrary, but right now, the CO2 hysteria has created a handy excuse to raise gasoline taxes.
A brief look at transcripts from the pre-budget consultations show that except for the usual suspects, such as the environmentalists, only a few submissions discussed GHGs. Yet, instead of taking the lack of response as a sign that people may want their government to pursue other priorities in the 2008 budget, the government is now looking for a polling company to call around to find out - you guessed it - what sacrifices British Columbians are willing to make to reduce GHGs.
The carbon tax grab is already going on elsewhere. In Europe, governments collect far more in carbon taxes than climate change impact justifies. According to a report by the Taxpayers' Alliance in the UK, green taxes and charges fill the government's coffers by £10.2 ($20.5) billion more annually than necessary to meet the social cost of Britain's CO2 emissions. For example, Britain's 50p ($1) per litre Fuel Duty (gasoline tax) raises more than five times the Intergovernmental Panel on Climate Change's estimate of the social cost of Britain's entire annual output of CO2 emissions.
Britain's Vehicle Excise Duty raises almost £20 ($40) billion more than the amount spent on roads there. That is between 3.6 and 40.9 times higher than the level needed to ensure drivers cover the official and academic estimates of the social cost of CO2 emissions. British Columbia is now heading down that road.
So, what happens in the economy when gasoline taxes go up Climate change enthusiasts suggest people will drive less. Will soccer moms start walking Not likely. In truth, it simply means more of the family budget is consumed by fuel, leaving less for other things that may also become more expensive. Higher gasoline taxes equal higher transportation costs, which will be passed on to consumers for everything from food to clothing.
The main beneficiaries of this tax grab are governments - who frankly have more than enough of our incomes already. Newer and more environmentally friendly technology will take longer to develop if the population is made poorer through higher taxes. If the government's goal is to increase the wellbeing of human beings and the environment, trying to fiddle with CO2 levels is a costly approach.
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