A new Fraser Institute study claims the province has been overtaxing British Columbians by hundreds of millions of dollars.
Director of Fiscal Studies Charles Lammam says the BC Liberals haven’t offered enough tax deductions to offset the carbon tax to keep it revenue neutral.
“What the government should be looking at is providing new tax cuts that offset the extra revenue that the carbon tax brings. And they should be looking at the types of taxes that are the most damaging to the economy. So considering cuts to personal income tax rates as well as cuts to corporate income tax rates.”
“For the first two years that we have historical data, B.C. tax payers have had to pay almost $400 million in higher taxes than they otherwise should had the government maintained its commitment to a revenue neutral Carbon Tax.”
The study has found once the reductions are taken out, B.C. taxpayers forked over $226 Million in increased taxes in 2013-14 and $151 million in 2014-15.
The report claims over six years, the province has collected more than $800 Million in higher taxes and the government has counted pre-existing tax credits as offsets for taxes accumulated from the carbon tax.
The federal government has imposed a policy requiring all provinces to have a Carbon Tax by 2018, and Lammam believes this would mean people across the country paying extra taxes if B.C.’s model was copied.
The province hasn’t responded to a request for comment.
B.C’s annual budget will be released next week.