BC Carbon Tax - funding transit operations?

Metro Vancouver’s 21 mayors have “come together” and agreed unanimously that the BC government should spend some of the carbon tax “revenue” on transit operations.  In fact, our mayors think that the BC government should spend exactly $300 Million of the carbon tax.  Well, wouldn’t it be nice to just get *free* money from the government?!

I have two main problems with this unanimous decision.  First, there is no carbon tax “revenue” under the BC Carbon Tax system….  it is a methodology to shift tax from good tax (i.e. income tax) to bad tax (i.e. pollution tax).  This systems works because there is incentive for individuals (persons and companies) to change and thus save money at the end of the day.  If the carbon tax collected is to be used in infrastructure, then it’s not revenue neutral, is it?!  Secondly, and more importantly, municipalities who have signed up to the BC Climate Action Charter can get the carbon tax that the municipalities have paid back!  As of March 31, 2009, 174 municipalities have signed up to this charter and I’m pretty sure that all 12 cities in Metro Vancouver are onboard.  How about pooling this amount of money for the transit system for Metro Vancouver?  I should look up how much “tax return” each municipality gets!

When times are difficult like now, it’s a challenge to spend money, municipalities included!  But why should we, as individuals who have changed our behaviours (willingly or not) and expecting a tax return be told that our mayors have unanimously decided that it’s fine to change the system?  That’s what I disagree….

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