British Columbians will be paying more at the fuel pump and less at tax time under a new carbon tax on all fossil fuels unveiled Tuesday as part of the Liberal government’s budget…[snip]
As part of the new tax plan, carbon-based fuels — including gasoline, diesel, natural gas, propane, coal and home heating fuel — will be taxed at $10 per tonne of greenhouse gases generated, starting July 1, 2008.
That will translate into a new 2.4 cents per litre tax on gasoline at the pump and 2.8 cents per litre for home heating fuel.
The carbon tax rate will rise by $5 a year for the next four years, until it hits $30 per tonne of greenhouse gas generated in 2012, said [Finance Minister Carole] Taylor.
The government intends to give the $1.85 billion the tax raises over three years back to the taxpayers in the form of tax breaks, Taylor emphasized.
Seems like the kind of promise and fiscal discipline that tend to slip after a while, falling victim to government spending demands or the desire to otherwise punish a disfavored industry.
Still, the carbon tax does seem a lot cleaner and simpler plan than cap and trade, doesn’t it?
(Hat tip: David Frum.)
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