The tax covers most types of fossil fuels. Since it came in, B.C.’s total use of those fuels has dropped by 16.1% (2008-13). By contrast, in the rest of Canada fuel use went up by 3% over that time. B.C.’s dramatic drop since the tax marks a big change from the previous eight years (2000-2008), when its fuel use was actually rising slightly compared to the rest of Canada’s. (These results reflect the latest available Statistics Canada data, and were published in a leading research journal.)
Moreover, B.C. significantly outperformed the rest of Canada on each of the fuels covered by the carbon tax, including home heating oil and natural gas. This consistent result across all fuel types is strong evidence that the policy is working well. And it further debunks the cross-border shopping argument (people aren’t hauling their home-heating oil tanks to Washington).
As for the economy, B.C.’s GDP has slightly outperformed the rest of Canada’s since the carbon tax began. This makes sense. BC simply raised taxes on pollution and lowered them on income. Since 2008, the province has cut income taxes by almost $1 billion more than it has taken in carbon revenues – so taxpayers are ahead overall. B.C.’s personal and corporate income tax rates are now among the lowest in Canada, making it an attractive place to do business.
Financial Post - B.C.’s carbon tax shift works
Moreover, B.C. significantly outperformed the rest of Canada on each of the fuels covered by the carbon tax, including home heating oil and natural gas. This consistent result across all fuel types is strong evidence that the policy is working well. And it further debunks the cross-border shopping argument (people aren’t hauling their home-heating oil tanks to Washington).
As for the economy, B.C.’s GDP has slightly outperformed the rest of Canada’s since the carbon tax began. This makes sense. BC simply raised taxes on pollution and lowered them on income. Since 2008, the province has cut income taxes by almost $1 billion more than it has taken in carbon revenues – so taxpayers are ahead overall. B.C.’s personal and corporate income tax rates are now among the lowest in Canada, making it an attractive place to do business.
Financial Post - B.C.’s carbon tax shift works
