Fan of the Laffer curve? Then you'll like this news, even though it has nothing to do with the Laffer curve per se. According to the BC budget for 2010/11, the carbon tax, implemented in 2008, will actually cost money to the governement! For this year only, the net costs are 69$ millions. This tax increases by 1c the price of fuel at the gaz station.
How so? Well, the BC governments overestimated the revenues it could collect through this tax. And with all the tax cuts that were introduced in order to make this carbon tax "revenues neutral", the net effect is a loss!
For the details, here is the BC's budget. For the carbon tax, go to pages 104-106.
So, the carbon tax: a right wing measure to cut taxes? On a personal note, I defended the carbon tax of Stephane Dion and I still think it was a good idea.
How so? Well, the BC governments overestimated the revenues it could collect through this tax. And with all the tax cuts that were introduced in order to make this carbon tax "revenues neutral", the net effect is a loss!
For the details, here is the BC's budget. For the carbon tax, go to pages 104-106.
So, the carbon tax: a right wing measure to cut taxes? On a personal note, I defended the carbon tax of Stephane Dion and I still think it was a good idea.
