A Day to Celebrate. By Charles Komanoff, Carbon Tax Center, June 30, 2008. "[Today, on Canada Day] British Columbia becomes the first state or province in the Western Hemisphere with a comprehensive, revenue-neutral carbon tax. The BC carbon tax starts at a level of $10 (Canadian) per metric ton of carbon dioxide, equivalent to 2.41 (Canadian) cents per litre of gasoline. In U.S. terms and at current exchange rates, that's $8.91 per short ton, or just under 9 cents per gallon of gas. The rate rises by $5 in each of the next four years, reaching $30 Canadian per tonne (U.S. $26.73 per ton) in 2012... The revenues [will be dedicated] to four tax reduction measures: 1) A new Climate Action Credit will pay lower-income BC'ers $100 per adult and $30 per child per year. 2) The bottom two personal income tax rates have been reduced by 2% on the first $70,000 in earnings. 3) The corporate income tax rate has been reduced to 11% from the current 12%. 4) The small business tax rate has been cut to 3.5% from 4.5%. Each provision will expand in tandem with the tax rate... The [Finance] Ministry last week preceded the tax with what it calls 'an immediate Climate Action Dividend' -- $100 for every man, woman and child in British Columbia -- via dividend checks sent to province residents."
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