British Columbia has one of the lowest corporate income tax rates (10%) in the Group of 8 wealthy nations, the lowest personal income tax rate in Canada on people making less than $119,000 a year, and better growth in GDP than the rest of Canada. The secret to their success? A shift to a carbon tax four years ago. British Columbia's success seems to be catching the attention of the mainstream media, as these two items suggest:
Oh, and they are also reducing carbon emissions faster than the rest of Canada:
The change in per capita GHG emissions in British Columbia since 2008 (-9.9%) relative to the rest of Canada (-4.6%) appears to indicate that the trend in British Columbia has accelerated. (From the Forbes article)To reduce the burden of the tax on lower income and rural populations, British Columbia provides targeted rebates.
Not only that, but the Forbes article also holds out some hope that there may be stirrings of support for a carbon tax in the ranks of Republicans:
In a July 10 interview with Grist’s David Roberts, Bob Inglis, a former Republican lawmaker bounced from the U.S. House of Representatives by a Tea Party challenger in 2010, said he supported shifting taxes from income to carbon as part of “a grand bargain to bring down rates and broaden the base.” On July 12, The Hill’s Ben Geman reported that representatives from left- and right-leaning groups had held several closed-door meetings since 2011 to discuss carbon tax proposals, with the most recent meeting convened the day before at the American Enterprise Institute. On July 13, Clean Technica published an interview with GOP elder statesman George Shultz in which he re-affirms his support for a revenue-neutral carbon tax.A carbon tax may not be everything we need, but it would certainly be a step in the right direction.