User:Ace02207/British Columbia carbon tax

Lead (Current)
The British Columbia carbon tax has been in place since 2008. It is a British Columbia policy that adds additional carbon taxes to fossil fuels burned for transportation, home heating, and electricity and reduces personal income taxes and corporate taxes by a roughly equal amount. The carbon tax is collected at the point of retail consumption (for example, at the pump for gasoline and diesel).

Insert explanation of revenue neutral tax and how the BC tax is revenue neutral --> refunds

British Columbia's policy is unique in North America; only Quebec has a similar retail tax, but it is set at a much lower rate and does not include a matching tax shift. Unlike most other governments, British Columbia's electricity portfolio largely consists of hydroelectric power, and its energy costs, even with the tax, are lower than in most countries.

Article body
Refit some information on the page so it flows more cohesively

Lay a basic overview of what the exact implications of the tax are, where the tax money goes, who benefits, and what makes it an equitable tax Sectors Covered - Agriculture Tax Reform in Include Incentives:

Climate Action Tax Credit

Business Incentive program - CleanBC Industry Incentive Program and Industry Fund

Include 3 Different incentives and explain how each benefits the region

Update current tax rate and future plan to raise*

Include a section on formerly taxed sectors that are now exempt from the tax --> Agriculture

Tax Rate
''In April 2019, the carbon tax increased to $40 /t CO2e, which is translated below into different fuel types. The carbon tax has since increased to $45 /t in April 2021 and then to $50 /t in April 2022.'' Since then, the BC Government has instituted a scheduled raise in the carbon tax rate of $15/t every year until 2030 where the tax rate will reach $170/t.

Scope of the Tax
(In January 2010, the carbon tax was applied to biodiesel. Before the tax actually went into effect, the BC government had sent out "rebate cheques" from expected revenues to all residents of British Columbia as of December 31, 2007. In January 2013, the carbon tax was collecting about $1 billion each year[Insert Source], which was used to lower other taxes in British Columbia. BC Environment Minister Terry Lake said, "It makes sense, it's simple, it's well accepted.") - This paragraph does not seem accurate and is not from a reliable source. The tax is not used to lower corporate taxes, instead it is used for programs that interested businesses can get involved in, barring they follow strict rules to being within the program and meet basic requirements.

Exemptions to the Tax
Exemptions have been made to the BC tax to favor some trade and international concerns. In 2012, the agriculture industry was concerned that the tax would harm their businesses financially, saying the tax would create difficulties and raise costs, making it harder to compete with foreign producers from the United States and Mexico. The industry is closely tied to and heavily depends on the fossil fuel industry, and the tax created a burden by raising the costs of food, labor, and shipping, when directly measuring income from farms relative to the tax implication. This exemption removed the tax for most fossil fuel emissions associated with agricultural processes.

Fossils fuels that are exported by the province are also exempt from the tax, as well as fuel from international ships and planes traveling into and out of the province, and airlines within the province which are subject to a federal carbon tax instead. Other exemptions include non-fossil fuel emissions like concrete production and fugitive emissions resulting from mining and drilling processes, such as flaring.

While a portion of BC's emissions remain untaxed, trends have shown that consumption in areas not taxed has decreased along with the covered sectors since the tax was established.

Beneficiaries
The BC Carbon tax is a revenue-neutral tax, meaning all of the collected tax is invested back into the province and is not kept by the government.

The Climate Action Tax Credit is framed as a refund for BC citizens. The amount is the annual credit which is split and disbursed quarterly. As household income increases, the tax credit decreases. This tax credit is designed to alleviate the burden of the carbon tax on low and moderate-income households. The credit is funded entirely by the carbon tax itself; it rewards those who use fewer fossil fuels and compensates those who may not have the means to switch to greener alternatives yet, and would otherwise be heavily impacted by the increased energy prices. (Change to facts)

The revenue from the carbon tax is also used to help promote energy and emissions reduction innovation. The CleanBC Industry Fund, financed by the carbon tax, is one way the government is promoting innovation. Companies can apply to receive money from the fund if they can prove that they are making efforts to reduce their emissions and environmental impact and are vying to be competitive in the market. The CleanBC Industrial Incentive Program also benefits businesses similar to the Climate Action tax credit. Businesses that emit less will end up paying less in the carbon tax, making their incentive payment in the program more worthwhile. The government makes payments to businesses already working with emissions reduction technology and seeking further development and structure in that area