(Not So) Happy Carbon Tax Day

This year July 1st was not just a holiday in B.C, it was also the day of the new Carbon Tax.  But with oil prices reaching record highs, and gas prices soaring right along with it, many motorists in Dawson Creek were unhappy with the new tax: even if it is only another two cents.

Drivers we spoke with had a similar message: "I don't like it, but what can you do."  The new levy affects all types of fossil fuels including natural gas, propane and jet fuel.  The provinicial government says the carbon tax is revenue neutral because they are off-setting these taxes with income and corporate tax cuts.  On the same day that the carbon tax came into effect, so did a 2% cut in income taxes.

South Peace M.L.A Blair Lekstrom, hopes that drivers remember that they are getting something in return for the increased gas tax:
"I think it's fair to say no one likes a new tax, and particularly on gasoline when it's as high as it is.  But the reality is, this is a revenue neutral tax. For every dollar collected by the government of British Columbia it will go back to British Columbians through tax cuts."

About half of British Columbians agree with this logic, according to a recent angus reid poll, but the same poll also showed that more than 80% of people surveyed agreed with the NDP's proposal to axe the carbon tax and target industry instead.

But Lekstrom reminds drivers that the new carbon tax does go after industry.

To ease the new pain at the pumps, the province issued $100 cheques to all residents last week.  But drivers in Dawson said the money won't make much difference to them, and one driver called the cheques a "joke."

The amount of carbon tax will gradually increase each July first, next year at the pumps the price will go up three and a half cents, in 2009 four and a half cents and by 2012, seven cents.  But as the carbon tax creeps higher, the cuts to income tax will grow with it. 

Tammy Banfield, CJDC TV News, Dawson Creek