@Canuck12:
And pay special attention to the following quotes:
“…the law introducing the levy required its proceeds to be recycled back to individuals and companies as cuts in income taxes. […] It seems to be working as planned. Since 2008 fuel consumption per head in the province has dropped by 4.5%, more than elsewhere in Canada. British Columbians use less fuel than any other Canadians. And British Columbians pay lower income taxes too.”
The new tax has not weakened the province’s economy, which has been boosted by high world prices for its commodity exports. Unemployment is slightly below the national average, and growth slightly higher. Because the tax started low and its rises were set out in advance, businesses had plenty of time to make plans to cut their carbon use."
" British Columbia has shown the rest of Canada, a country with high carbon emissions per head, that a carbon tax can achieve multiple benefits at minimal cost."
Well first off, the tax is not just on fuel gas but on any carbon producing energy source, including electric plants:
One possible reason that the carbon tax has had a negligible effect on economic growth, however, is that British Columbia gets the majority of its electricity from low-carbon hydropower, so electricity prices have been less affected by the tax than, say, they would be in a natural-gas-heavy province like Alberta or a coal-reliant state like Indiana.*
British Columbia has also used the carbon tax proceeds to lower both its local corporate income tax and the tax rates on the bottom two brackets, in order to alleviate the fact that the carbon tax hits the poor a bit harder. �As a result of the carbon tax shift,� the authors write, �BC now has one of the lowest general corporate income tax rates in Canada (tied with Alberta and New Brunswick), and also the lowest personal income tax rate in Canada, for those earning up to $119,000.�
(From: http://www.washingtonpost.com/blogs/ezra-klein/wp/2012/09/19/how-would-a-carbon-tax-work-lets-ask-british-columbia/)
And according to this statement, and if I am not mistaken, the majority of the income tax relief is for lower earners and smaller companies. Yes, you can argue that a carbon tax affects them more and that they need the relief more, but it isn’t fair to the large companies. This is an example of redistribution of earned income via a tax. I am not saying that is the primary goal of the tax, because I don’t believe that it is, but it certainly isn’t “fair”.
But I don’t live in BC, or Canada, so you might have to challenge me if I am making an uninformed statement.