Carbon Tax Follies

The Carbon Tax flim-flam in BC and Canada gets exposed by Norm Farrell’s excellent In-Sights blog.

Zwei has always thought the Carbon Tax was mere politcal theater as all Carbon Tax revue is deposited in “general revenue”, spent at the government’s whim.

With a compliant mainstream media, the Carbon Tax scam continues unabated, being nothing more than a funding vehicle for the oil and gas industries provincial and federal subsidies.

Like all taxes, the Carbon Tax ends up as being a tax on the poor while big business enjoys the profits of this tax.

 

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Carbon tax justification for fools

According to a study published by Nature Climate Change, governments of 51 countries spent C$940 billion subsidizing fossil fuels in 2021. The number is likely higher since there are many indirect subsidies, such as Canada’s $35 billion Trans Mountain pipeline, and it is unclear if benefits provided by sub-national governments are included.

In fiscal year 2022, fossil fuel companies in British Columbia used royalty credit programs to reduce payments to the BC government by more than $1.5 billion. In addition, monthly tenders for natural gas and petroleum rights have been eliminated. These sales once put billions of dollars into the provincial treasury.

Royalty reductions and elimination of rights payments have drastically altered provincial revenue. These numbers, extracted from Ministry of Finance documents, include accrued royalty credits but all numbers have been adjusted to 2022 dollars using the Bank of Canada inflation calculator.

Declining government revenue might suggest declining production of natural gas. The opposite is true according to production numbers provided by Canada Energy Regulator.

The BC Government is recovering part of the forgone fossil fuel revenue through carbon taxes, as shown in the latest Budget and Fiscal Plan.

Vancouver Sun’s Gordon Hoekstra reports that carbon taxes will triple in BC by 2030.

Carbon tax is levied in BC to encourage residents to reduce consumption of carbon based fuels. But that is justification for fools, because natural gas not burned here is exported to be burned elsewhere. The trouble, of course, is that we have only one Earth and one atmosphere.

Comments may suggest I oppose carbon taxes. The opposite is true, but it is idiotic to use them as a device to to raise fossil fuel exports and achieve no real improvement in carbon emissions.


Note: Writing this leaves me wondering if the next boardrooms Coalman John Horgan occupies will be those of gas producers. No doubt they believe he deserves generous rewards.

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