BC Premier Christy Clark loves to espouse the virtues of our now nine year old carbon tax. Terms like “revenue neutral” are thrown around without being qualified or quantified.
Conservatives were always skeptical of this claim, understanding that the carbon tax was basically a consumption tax, and consumption taxes always get passed on to you and I, the consumer.
Fortunately, the Fraser Institute investigate the BC Liberals’ claim and have just released their report.
It finds that the BC carbon tax was revenue neutral when it was first introduced, but that since its price was raised from $10/ton to $30/ton, there have not been further tax cuts elsewhere to offset this increase.
I caught up with the report author, Charles Lammam, the director of Fiscal Studies at the Fraser Institute, who explains what the BC Liberals can do about this tax to keep their promise.