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Finance Minister Says Tax Cuts Will Offset Carbon Tax

By 250 News

Wednesday, February 20, 2008 04:47 AM

 Minister of Finance Carole Taylor says the $100 dollars that each person will receive from the provincial government is designed to offset the 2.4 cent increase in the price of gasoline come July 1st-2008.

The Finance Minister, commenting on the budget to Opinion250, says the reduction in taxes which will see an average family with two children see their taxes drop by about $260 dollars a year ,is designed to offset the effects of the 7.2 cent a litre increase in the cost of fuel.

The Minister says her department has calculated that the increase in the cost of running a pick up will amount to $46 dollars in year one to $96 dollars in the second year.

Taylor says the Province will spend an additional $10 million to improve roads that have been badly worn by heavy trucks hauling Beetle wood.

There is a reduction of $24 million in school taxes for big industries such as pulp mills and saw mills which will help them to get through the tough times ahead.

Those tough times according to the minister will be felt this year in the forest industry. "Our forestry revenue was cut from September of 2007 to February of 2008 by $1 billion dollars "  That shows just how big an impact the down turn in the forest industry is having on the province.

"It is going to be a difficult year in the forest industry" said Taylor, "We are hoping  the round table will be able to come up with some ways of helping us through these tough times."

In the meantime, the Province will offer special incentives to Movie companies to locate their productions outside of the lower mainland, "We are hoping by handing out this tax break that more film companies will shoot productions outside of  that area."

Will the Province re examine the fuel tax if it hurts those in the central and northern part of the province who must rely on pick up trucks and other SUV’s in order to get to and from work which in many cases can be a substantial distance?  Taylor says it has already been suggested that the next finance minister will look at how the tax in playing out over the next two years and can recommend changes.

This was Carole Taylor’s last budget. She is not seeking re election in the upcoming provincial election.  


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Comments

If they are trying to offset the increase, then why do it at all? Stupid Liberals.
Because...down the road when we sort of forget the new tax grab, they will raise income taxes.
Living in the North is difficult
We have higher heating bills
We have tougher road conditions
Drivers on fixed incomes are going to have a tough time
There should be some compensation from the increased price of gas for Northerner's.
"If they are trying to offset the increase, then why do it at all? Stupid Liberals."

Can't agree. The increase in the price of fuels is designed to be an incentive to reduce consumption, i.e. carbon emissions.

Diplomat:- "The increase in the price of fuels is designed to be an incentive to reduce consumption, i.e. carbon emissions."


That might be what they say it's 'designed' to do, Diplomat, but in the overall scheme of things, will it?

I think it's rather wishful thinking, even though I hate to ascribe the word 'thinking' to anything that comes from Gordon Campbell's government.

We still have to heat our houses, and even if we do it electrically that's going to involve the burning of fossil fuels now, somewhere.

Since we 'import' thermally produced electricity at night, and 'export' hydro generated electricity during the day to take advantage of the difference in rate structures between peak and off-peak periods.

And if we go back to burning wood, or use pellets, we're still adding carbon dioxide to the atmosphere.

As far as applying the tax to motor fuels, even though it may cause some to drive less, it will be applied to all commercial transport fuels , too. And the result of that will be an increase in the price of everything we buy.

If we're to try to just maintain our standard of living, let alone adding anything that's more fuel efficient to our possession, the only way most can do so is to 'work' more. (A wage increase won't do us any good, since the cost of the increase will just be a further addition to prices.) If we 'work' more, we ADD to greenhouse gases, rather than reduce them. We can't help but do that.

This whole budget is one more reason we should get rid of this government. We haven't had 'good government' in this Province since WAC Bennett was in office.

And the only reason we had it then was because the BC Social Credit League, for the vast majority of the time WAC was in office, had a core 'philosophy' that anything that was "physically possible, socially desirable, and morally correct, could ALWAYS be made FINANCIALLY possible."
And not by 'taxing' us to death, either.

In other words, they realized, unlike any of our governments since, that FINANCE is properly the SERVANT of man. Not his master. Contrast that with Gordo's yesterday shifting of the taxes on large financial institutions to you and I and everyone else, and you can see how we 'progressed' since then, and where the problem now lies.

socredible, how do we import thermal energy? Do yo have any links?
not questioning you, just curious.

al
So if one tax offsets the other what is the point?
"""The Minister says her department has calculated that the increase in the cost of running a pick up will amount to $46 dollars in year one to $96 dollars in the second year."""

I sure would like to see the numbers the ministers department is using to calculate these amounts? It must be some type of hybrid half/pint imaginary pick up???

In order to pay all these new taxes I have to drive to work...it's impossible to reduce my consumption of fossel fuels unless I buy a horse, just more plain stupid Liberal tax mongering.



The so called carbon tax revenue will disappear into general revenue,like this kind of thing always does.
And then it will increase.
Just watch.
We just got fed the biggest bulls**t sandwich we have seen in years and they will get away with it,as they always do!
Fools we are!
A hunnert bucks? Whoopee!! A whole fill up on a tank of gas, some lottery tickets and a trip to Timmies. Boy, will I be green then. Hope they print lottery tickets on recycled paper. That should lessen my guilt a bit.
Dead people and prisoners gonna get a hunnert bucks too? Betcha they do.
Remember when the government was questionned on how they would fund 2010?? One of the suggestions was a carbon tax. Other mentions was taxing junk food, increasing tax on alcohol, tobacco, and fuel. This is why they drag their heels on reducing the sales tax. Funny how the expected revenue from this carbon tax equals the expected cost for the olympics.

Wish I could find the supporting interview. This was about 6 yrs ago?--right around the time Vancouver got selected to host.

Here is another thing: This is NOT going to reduce emissions. If the govt wanted to seriously do that there would be huge financial incentives to purchase hybrid cars, surcharges on large industry and tax reductions for those who currently use "green" alternatives. Instead, fares for taxi and bus increase, provincial recycling programs aren't on the radar, and the province flogs the lowly taxpayer.

Where's Robin Hood when we need him. We pay enough already. Now tax freedom day will extend into August. Ludicrous! This will certainly affect negatively on our economy.

Carol, this may be your last budget so you don't care, but this was NOT in the best interest of BCers. Stupidity!
Just my honest opinion.
Bunch of bunk.
I was only responding to the question posed in the first comment, socredible.

"This whole budget is one more reason we should get rid of this government. We haven't had 'good government' in this Province since WAC Bennett was in office."

Has the Social Credit Party been revitalized? The NDP would be a worse choice - they would re-embark on driving most of the industry (that is capable of leaving) out of the province again.

There are already incentives in place to purchase hybrid cars and trucks.

"Funny how the expected revenue from this carbon tax equals the expected cost for the Olympics."

I do see a lot of Olympophobia expressed here. The $1.8 billion are being returned to the people by reductions in income tax, as outlined in the budget for those who actually decide to read it.

In every country where the taxes on gasoline have been increased per capita consumption has decreased because of resultant life style changes. Smaller cars, less driving, more use of public transportation, more walking, bicycling, better more fuel efficient vehicle designs, wind farms, solar panels...the list goes on.

It is more difficult for us here in the north, because of the colder climate. Definitely that part has not been addressed, probably because people and politicians who live on balmy Vancouver Island where the Legislature is located (!) tend to be forgetful of the fact that there indeed is life on the mainland and even to the north of Vancouver, north of the vacation paradise of the Okanagan.

An SUV does not have to have monster proportions just to transport a couple of people around the town, it does not need to be remotely started and idled for 30 minutes every morning.

The world is changing.
After I get paid and fill up my SUV. w@ith the few bucks I have remaining, I will start being very selective where I shop and what I buy. Seeing as how I have fewer dollars. That ought to make our economy grow by leaps and bounds. Oh yes, I am waiting for the government in China to institute a carbon tax like ours. But then again, a carbon tax on a country that relies on bicycles more than cars? Good luck.
Its amazing how many people moan and complain about the increased fuel costs but how many never even think of slowing down on the roads. IMO thats the best way to reduce GHG emissions and still get to were you need to go.
Oalexo:- "socredible, how do we import thermal energy? Do yo have any links?
not questioning you, just curious."

We buy thermally generated electric power from Alberta at night, and probably also from some of the western States, and turn our own hydro generators off. During the day, our hydro comes back on line and feeds power back into the grid from which we all draw.

The reason for this, as it was explained to me by BC Hydro last summer, (when they phoned our business to inform us of some metering changes coming up this April, which will increase our bill), is that a thermal plant has to operate at its rated capacity 24 hrs a day to be efficient.

During the day Alberta and the western US generally buy power from us, (and BC Hydro gets a good price for it, since its sold at a premium during those 'peak' hours), but at night, as the demand drops, we buy power from them. Since otherwise they wouldn't be able to run their thermal (coal powered, usually) plants at capacity 24/7.

This, I believe, though Hydro's man wouldn't come right out and say it, is why they say we're a net importer of electric power now. On a KwH basis that's probably so, but no one tells us whether that's still the case on a $ basis.
Diplomat:- "Has the Social Credit Party been revitalized? The NDP would be a worse choice - they would re-embark on driving most of the industry (that is capable of leaving) out of the province again."

The BC Social Credit Party still exists, and judging by the number of hits it gets on its rather poorly maintained website, www.bcsocialcredit.bc.ca/ there must be some interest. The original ideas it was founded on are probably more relevant today than ever.

I doubt whether today's NDP would be a 'worse' choice than the BC Liberals. Gordo's crowd are about rock bottom as far as I'm concerned. But I think we could still do far better than the same old NDP socialist, tax and spend, 'big brother knows best' nonsense, too.




"Its amazing how many people moan and complain about the increased fuel costs but how many never even think of slowing down on the roads"

Not near as amazing as people who complain about fuel costs and then purchase brand new vehicles that can't break 20MPG on the highway in ideal conditions . . . LOL.
"So if one tax offsets the other what is the point?"

Let me try to explain it this way.
A can of pop costs $0.50. They are being thrown into the garbage after use. Result = landfill increase + more aluminum production with associated high energy use.
The government puts in a $0.05 per can fee to discourage dumping.

They return the $0.05 per can returned to be recycled, thus offsetting the increase in order to encourage recycling. Of course, some people do not care and still dump the cans.

Recycling pop bottles has been a successful program, getting a large percentage of people to do what the government wanted them to do.
The same with the energy refund. Some will use it to reduced energy use � buy bus passes and not take the car a few times for example. Others will buy more beer and piss it away.
;-)
This is a direct tax to the forest industry, which is a green industry. It would have been better to exempt the forest industry and in turn tax the forest industry by creating regualtions that benefit employees with the same overall cost.

Forest companies in Washington State and Alberta will not be paying this tax so it puts our primary industry at a disadvantage. At least if the money went to the employees through regulation rather than general government revenue....
I would urge everyone to start firing off emails to the Campbell government and don't be kind!
It may not change anything,but at least you will have your say!
And the only thing they do understand is anger from the voters.
To simply lay down for this kind of crap is exactly what the Liberals expect us to do...and we probably will.
The general public is at least predictable!
And few emails to Carole James and the NDP wouldn't hurt either, as they are the only ones who can or will say anything in the house...not that will do much good!