Carbon tax must increase to be effective, says federal environment minister

tay

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May 20, 2012
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Today, federal Environment Minister Catherine McKenna told CBC's The Early Edition that carbon taxes have to go up in order to be effective.

"With carbon pricing, it has to increase over time or it just doesn't have the effect that is needed. It just doesn't create the incentive."

Carbon tax must increase to be effective, says federal environment minister - British Columbia - CBC News


Now that's a conundrum for the Libs..........

Canada’s attempt to act on climate change is being undermined by $3.3bn in government subsidies flowing to oil and gas producers in the country a year, a new report has warned.

The $3.3bn annual subsidy, made up of extraction incentives and research and development, amounts to paying polluters $19 for each tonne of carbon dioxide they emit, according to the green groups. This would conflict, they say, with the planned carbon price, which will ramp up to $50 a tonne by 2022.

“This system is like taxing consumers when they buy cigarettes while giving massive tax breaks to tobacco companies that encourage them to produce more cigarettes. It doesn’t make sense,” said Alex Doukas of Oil Change International.

Dale Marshall of Environmental Defense added: “Unless Canada phases out massive subsidies to oil and gas companies, Trudeau’s carbon price will do little to encourage polluters to cut carbon emissions. The $3bn in annual subsidies could be put to much better use by investing in climate action, healthcare or other initiatives.”

G20 countries, including Canada, agreed to phase out fossil fuel subsidies in 2009. However, the burning of oil, gas and coal is still supported across the world by subsidies amounting to $5.3tn a year, equivalent to $10m a minute every day, according to the International Monetary Fund.

This huge sum, greater than the total health spending of all the world’s governments, comprises direct subsidies and financial support as well as the externalized cost that people pay for fossil fuels in terms of air pollution and extreme weather driven by climate change.

https://www.theguardian.com/world/2...e-canada-fossil-fuel-subsidies-carbon-trudeau
 

Remington1

Council Member
Jan 30, 2016
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If the unemployment rate doesn't improve soon, taxes will go up for both the US and Canada, but at least Canada;s tax burden includes Nat'l Health Care. The %% below are an approx. :

A few of the Highest taxing of the working force-- Belgians pay the highest tax @ 54.9%; Findland @ 46.6%; Germany @ 45%

A few of the Lowest taxing of the working force -- USA @ 27% (one of the lowest marginal), Switzerland @ 20% and Canada @ 31.2%, Australia @31.5%

31.2% is fair, and keeps us competitive. We don't need more taxes, and for any intelligent people to accept more taxes, the Liberals are going to have to call it a 'tax', and trying to hide it simply results in angering people; patronizing adults does not work.
 

Machjo

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Oct 19, 2004
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Will Canada introduce an export tax on Canadian carbon exports to the US to make the US pay its fair share?

It would help push the CAD down and Canadian manufacturing exports up.

It might push gas prices in Canada down somewhat too at least relative to the cost of gas in the US.

If the unemployment rate doesn't improve soon, taxes will go up for both the US and Canada, but at least Canada;s tax burden includes Nat'l Health Care. The %% below are an approx. :

A few of the Highest taxing of the working force-- Belgians pay the highest tax @ 54.9%; Findland @ 46.6%; Germany @ 45%

A few of the Lowest taxing of the working force -- USA @ 27% (one of the lowest marginal), Switzerland @ 20% and Canada @ 31.2%, Australia @31.5%

31.2% is fair, and keeps us competitive. We don't need more taxes, and for any intelligent people to accept more taxes, the Liberals are going to have to call it a 'tax', and trying to hide it simply results in angering people; patronizing adults does not work.

If we raise the carbon tax, then we should lower business taxes.
 

Jinentonix

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Sep 6, 2015
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Is this the same Catehrine McKenna of the Liberal party that approved the Pacific Northwest LNG pipeline? The same KcKenna who claimed the Liberal government's decision to approve the LNG project was guided by "science" and the "traditional knowledge of Indigenous peoples."? You know, despite the fact that over 120 scientists were against it and the Native groups are pissed about it.

Looks like Trudeau and KcKenna are closet Harperites. :-D
 

petros

The Central Scrutinizer
Nov 21, 2008
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Did emissions rise in BC when Clark kept the carbon tax at the current rate instead of raising it as it was supposed to be?
 

Jinentonix

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Sep 6, 2015
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BC did well.

They reduced their carbon emissions and they have the best economy in the country.
HAHAHAHAHA No, they have not and no they do not. Unfortunately, you're an example of an idiot that believes anything his ideological masters tell him. Here's a little something from Marc Lee, a pro-carbon tax economist.


"Let's cut the crap about B.C.'s carbon tax. The impact of the carbon tax has been overstated by people who love carbon taxes, and it's annoying that the tax has generated so much uncritical praise." -- Marc Lee, pro-carbon tax economist.

To hear it from Premier Christy Clark, our province is a beacon of trailblazing perfection in the battle against climate change.

And the crowning glory of B.C.'s efforts is the carbon tax introduced in 2008. The tax now adds 6.67 cents a litre to the price of gasoline and imposes costs on other fuels for residents and industries.

"We think in British Columbia a carbon tax is a really successful way to go," Clark said in November 2015 before jetting to the Paris climate change talks.

Cue the applause, from the New York Times to the Organization for Economic Co-operation and Development to new group Smart Prosperity that launched last week in Vancouver, with none other than Prime Minister Justin Trudeau to validate Clark's claims that you can price carbon and reduce greenhouse gas emissions -- without hurting your economy.

The only problem is that B.C.'s carbon tax doesn't work.

Whether you look at greenhouse gas emissions or economic statistics, B.C. carbon tax has tanked.

Marc Lee, senior economist for the Canadian Centre for Policy Alternatives in the province, likes carbon taxes. But "don't believe the hype on B.C.'s carbon tax," he says.

"The reality is that since 2010, B.C.'s GHG emissions have increased every year; as of 2013 they are up 4.3 per cent above 2010 levels," Lee writes on the CCPA website.

Even on a per capita basis, emissions have risen.

"We see the recession-induced drop in 2009 and 2010, then increases from 13.5 tonnes per person in 2010 to 13.7 tonnes per person in 2013," Lee says.

Lee points out that two-thirds of B.C.'s greenhouse gas increase is because of growth in the natural gas industry, which Clark boasts is better than other fossil fuels. And that's without a single liquefied natural gas plant being built.

Unfair and regressive

OK. Greenhouse gas emissions went up. But surely there's better news on economic growth?

"B.C.'s economy did not collapse due to the carbon tax, but nor did it grow faster than its neighbours," Lee writes.

In fact, Alberta's gross domestic product grew 22 per cent from 2010 to 2014. Saskatchewan's GDP grew 15 per cent, B.C. lagged with 11-per-cent growth. The gap is similar if you compare growth since 2007, before the carbon tax.

Nor is the carbon tax fair. It's a regressive tax that benefits big business and the wealthy at the expense of lower- and middle-income earners.

The Liberals pledged to offset the carbon tax with reductions in other taxes. But those have favoured businesses, not families.

"Most of the carbon tax revenues (2/3) have been in support of corporate income tax cuts, plus 17 per cent to personal income tax cuts, 12 per cent to a credit for low-income households, and small amounts for a bunch of boutique credits, some of which have nothing to do with carbon," Lee writes.

"The low-income credit, in particular, offset the carbon tax for the bottom 40 per cent when it was first introduced in 2008," Lee writes, "but as the tax has gone up, the credit has not, making that whole regime regressive -- that is, low-income households pay a greater share of their income to the tax than higher-income households."

That low income tax credit amounts to up to $115.50 a year per person -- little more than a couple of tanks of gas.

Enviros hell-bent for a tax

So the B.C. carbon tax hasn't reduced greenhouse gas emissions, might have slowed economic growth and hurts the poor while benefitting the rich -- and for this it's praised?

OECD secretary-general Angel Gurria is among the misinformed.

"The implementation of British Columbia's carbon tax is as near as we have to a textbook case, with wide coverage across sectors and a steady increase in the rate, from $5 to $30 per ton over a period of five years," Gurria wrote.

It may be a textbook case all right -- of not doing your homework.

And the New York Times' Eduardo Porter wasn't going to let the facts get in the way of a good story either, claiming: "British Columbia's economy did not collapse. In fact, the provincial economy grew faster than its neighbours' even as its greenhouse gas emissions declined."

Errr, no, that's wrong on both faster growth and declining GHGs.

And Smart Prosperity, the new think tank which loves B.C.'s carbon tax as it purports to promote a "greener, more competitive Canadian economy," receives some of its funding from Shell Canada -- which owns 60 per cent of the Athabasca Oil Sands Project that produces 255,000 barrels of synthetic crude per day, along with its gas stations, refineries and oil facilities.

But why are otherwise credible organizations and individuals missing the facts?

Partly because some in the environmental movement were hell-bent for a carbon tax and willing to sell their ecological souls to former Liberal premier Gordon Campbell -- with his government's horrific record of slashing environmental protection -- in order to achieve North America's first carbon tax.

A low point came when noted green activist Tzeporah Berman presented Campbell with an award in Copenhagen in 2009 for his "climate action leadership."

"B.C. is being recognized for climate leadership for legislating aggressive targets to reduce emissions, banning conventional coal-fired electricity, and implementing North America's first broad based revenue neutral carbon tax," said a statement from 10 environmental groups, including World Wildlife Fund Canada, the David Suzuki Foundation, Environmental Defence, Forest Ethics and the Pembina Institute.

Berman and Suzuki supported Campbell and attacked the B.C. New Democrats during the 2009 provincial election over the NDP's opposition to the carbon tax, drawing furious responses from other environmentalists.

And not a dime for bike lanes

B.C.'s carbon tax also fails to deliver because it doesn't fund a single green initiative -- not one dime from it pays for bike lanes or buses or wind turbines.

The model introduced by Campbell and then-finance minister Carole Taylor -- now advising Clark -- reduced corporate and personal income taxes to compensate for the higher tax on gas and other fuel, with revenue neutrality the promise.

That means the tax is regressive, because average British Columbians pay a higher percentage of their income on gas, heating fuel and other carbon-taxed products. A cut in the progressive income tax -- where the more money you make, the more you pay -- was "balanced" by a hike in a regressive sales tax on fuels.

And for northern and rural residents, the carbon tax is even more unfair. They have little or no access to transit and face higher heating costs, which went up with the carbon tax.

So while Vancouver millionaires got a big tax break to buy a new $100,000 Tesla electric car, the Surrey mom or Prince George dad got dinged for higher gas and heating costs.

But don't expect the converted to contradict carbon tax catechisms. That would mean having to find real solutions, with empirical evidence to back up their claims. Something carbon tax backers have failed to do.

http://thetyee.ca/Opinion/2016/03/08/BC ... x-Failure/
 

PoliticalNick

The Troll Bashing Troll
Mar 8, 2011
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Did emissions rise in BC when Clark kept the carbon tax at the current rate instead of raising it as it was supposed to be?

Who cares. Bc is a massive carbon sink. They could increase their emissions 10x then double it and still be a carbon sink. Its just a scam for taking more money from the masses.