Vancouver: North America's 1st carbon tax rolls out under fire

[phantom power]

VANCOUVER, British Columbia (Reuters) - Civic leader Scott Nelson says he is as worried as anyone about global warming, but that does not make him happy to be one of the first North Americans to pay a carbon tax to curb climate change.

Nelson, mayor of Williams Lake, British Columbia, says record high energy prices mean that the levy, for all its good intentions, could not come at a worst time for residents in his community, a lumber and ranching town about 525 km (340 miles) north of Vancouver.

"The last thing they need now is a tax on top of these soaring prices to add insult to injury," said Nelson, predicting that a taxpayer revolt will eventually scuttle the new tax, which takes effect on July 1.

http://news.yahoo.com/s/nm/20080627/ts_nm/carbon_tax_dc_1;_ylt=Al8U1jthbqmi5EYA1L2j91xrAlMA

[tuvor]

1. The BC gov't mailed everyone a $100 cheque.

Enough to offset the tax on over 4000 litres of gasoline, if you want to use it toward that. For my vehicle, that works out to over 40,000 kilometres.

There is also a reduction in personal provincial income tax as of July 1, though I'm not sure how significant it will be.

At any rate, despite the ire (that didn't seem to be nearly as intense when the tax was announced months ago), I haven't heard anyone offer to return their cheque.

Me, I bought a bicycle with mine. (And--nice surprise--there's no provincial sales tax on bicycles!)

[Howzit]

2. What is the point of charging a tax and immediately nullifying that with a rebate?

Is this a way to get people who would otherwise campaign against the tax to accept it? Is the plan to raise the tax later after removing the rebate?

Sounds like a frog soup recipe to me.

[kgrandia]

3. Actually makes a lot of sense

I got the $100 rebate cheque and if I drive 2% less than I do right now I make up for the tax at the pump and have the $100 to spend on whatever I want - the idea shifts the tax burden to reward people who make the decision to not drive as much.

[Howzit]

4. Why not just tax the fuel?

The less fuel you use, the less tax you pay.