Saturday, September 20, 2008

No explanation yet from P.M. on Pimping B.C. 's Carbon Tax.

The BC government estimates that the Carbon Tax will bring in approximately $1.85 billion over three years. If those estimates are accurate, GST of over $92 million will also be levied by the Federal government. Some (but certainly not all) businesses can recover this GST as in input tax credit, but consumers cannot. Schools, universities, hospitals, charities, and non-profit organizations will also be paying additional GST that cannot be recovered.

If, as has been estimated, individuals will be paying 1/3 of the Carbon Tax assessed, that means that a minimum of $30 million will flow out of BC and into the Federal treasury on account of GST charged on the Carbon Tax over the initial 3 year period. This estimate does not factor in the aforementioned schools, universities, hospitals, charities and non-profit organizations, which will certainly account for millions more.
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Don Quixote Note: To date only 1 Federal Leader (Elizabeth May ) has offered her comments on this absurd application of the GST on the B.C. Carbon tax. 3 of the local candidates from the NDP, CAP and Green Parties have taken the pledge to eliminate the GST on the B.C. Carbon Tax and will not impose the GST on any future Federal Carbon Tax.

No reply from the Local Liberals or our Conservative M.P. yet.

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