Quick Carbon Tax Q&A
Here are some quick facts on the tax:
What is the Carbon Tax?
The carbon tax is a revenue neutral tax on carbon dioxide emissions. Originally it was a $10 tax on every tonne of CO2 burned. It was increased to $15 as of July 1, 2009. This works out to about 3.6 cents per litre of gasoline.
How much revenue was collected for 2008-2009?
Government estimates put it at about $300,000.
What is the government spending the tax money on?
It isn’t being spent, it is being used to offset other taxes – such as personal income taxes. No carbon tax money will be used for government projects or services. No money is going to road maintenance, TransLink, BC Hydro, or any other such service.
If that’s the case… more taxes mean more tax breaks, right?
Exactly.
When should we expect our $100 cheques?
The Climate Action Dividend was a one time only thing. Low income families can still expect a Low Income Tax Credit cheque of $105 per adult and $31.50 per child.
Aren’t you worse off the further north you live?
Totally incorrect. Statistics show that lower mainland residents consume more gasoline per household than residents in the north. Regardless, the best way to offset the increased carbon tax is to drive less and look for green savings elsewhere (see LiveSmartBC.ca for ideas!)
What about schools and cities — do they have to pay, and if so, doesn’t that mean the cost gets passed on to the taxpayer?
Carbon tax money collected from cities and municipalities (and thus school districts) is passed back on to the city/municipality it was collected from to be invested in green projects.
Happy Canada Day!
Tags: $100, 3.6 cents, BC, BC Liberals, BCNDP, Canada Day, Carbon Tax, Carole James, cheque from the government, climate action dividend, facts, gas tax, Gordon Campbell, low income tax credit, tax increase
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