Bc Carbon Tax Not Revenue Neutral

British columbia s carbon tax was the best example in canada of a revenue neutral carbon tax one that offsets its cost with cuts to other taxes though the province s use of the revenue has.

Bc carbon tax not revenue neutral. Even the so called gold standard of carbon taxes in canada british columbia s revenue neutral model was revealed by the fraser institute not to be revenue neutral. By their calculations b c s carbon tax ceased to be appropriately revenue neutral in the 2013 14 budget year. By jonathan marshall and robert archer ccl economics policy network the most sophisticated economic models available today tell a consistent story about the likely impacts of levying a national fee on fossil fuels. Between its inception in 2008 and 2015 the bc carbon tax has generated c 6 1 billion in revenue yet corresponding tax cuts have been more than c 7 1 billion.

Now with the ascension of the ndp green party government in victoria all pretense. The addition of the new tax measures are projected to make the carbon tax revenue neutral starting in 2017 18. By changing the daily behavior of every consumer investor and enterprise such fees would dramatically reduce emissions of carbon. This is certainly contrary to what the b c.

Going forward bc has earmarked its carbon tax revenues above 30 tonne rather than. Whether or not it is revenue neutral repealing a carbon tax leaves a hole in a government s budget that typically will need to be filled by increasing another tax potentially rekindling anger among voters just as they have gotten used to the carbon tax. Thus the tax has not truly been revenue neutral to date a point we will return to later in the paper. In other words b c s carbon tax ceased being revenue neutral in 2013 14.

And implementing north america s first broad based revenue neutral carbon tax said a statement from 10. 10 fast facts about revenue neutral carbon fees. Finally the bc revenue neutral carbon tax act is not net regressive. The government had been.

However based on our calculations british columbians are still on track to experience a 599 million net tax hike from 2013 14 to 2016 17 as the carbon tax does not appear to be revenue neutral in those years. Government reports in its official documents which claim that the total value of tax cuts more than offsets carbon tax revenue.