"When it was introduced back in 2008, the carbon tax dedicated about one-third of revenues to a low-income credit (the remainder going to personal and corporate income tax cuts). This was a big positive with households in the bottom 40% of the distribution slightly better off on average, with credits exceeding taxes paid. Alas, last year’s increase to $15 a tonne wiped out that gain because the low income credit barely increase in value (from $100 per adult to $105), while the carbon tax grew by 50%. The new 2010 increment to the carbon tax will make the whole regime regressive – meaning a bigger hit to low-income families relative to their income; they will be absolutely worse off even after considering the credits.In fact, the Carbon Tax is not intended to reduce greenhouse gases. It is a method of financing cuts to corporate income taxes, cuts to gas royalties and increases in tax credits to oil and gas producers. If BC Liberals had a real interest in reduction of the human carbon footprint, they would oppose the Enbridge pipeline from Alberta to a new oil export port in Kitimat. And, they would multiply the capacity for environmental oversight, regulation and inspection in BC's northeast oil and gas fields.
". . . Like the HST, the carbon tax brings a windfall to business, with a large chunk of this year’s revenue going to corporate income tax cuts. Back in 2008, the projected recycling to business tax cuts in 2010/11 was estimated at $333 million. In the 2010/11 budget that amount has been souped up to $412 million – more than half of the anticipated $796 million in carbon tax revenues – to add onto savings coming from the HST.
"Since all taxes are ultimately attributable to households, corporate tax cuts are essentially upper income tax cuts."
Liberal and Conservative politicians, both federal and provincial, pay lip service to environmental issues. But, that is all. Stephen Harper claimed that Canada promotes "truly global action against global warming." Gordon Campbell's government said,
". . . Earth’s climate is changing because of human activities. The effects will continue to worsen if no action is taken. That is why the B.C. Government has taken action by introducing the revenue neutral tax on carbon emissions."
In late 2010, French oil giant Total announced a $1.75 billion partnership with Suncor to develop Alberta tar sands production. That followed Total's earlier $1.5 billion acquisition of a prized tar sands property from Calgary's UTS Energy. Total has other tar sands assets in Alberta and has plans to invest $20 billion in Canadian oil production. Almost all of its projects in Alberta are opposed by environmental groups because of greenhouse-gas emissions and water pollution.
We should know the kind of company welcomed to Canada's dirty business. The following is from High Friends In Low Places by Forbes.com :
"A $2.25 billion shale partnership with U.S. gas giant Chesapeake Energy in Texas (and an option in New York) has slowed because of concerns about the rock-splitting technique called hydraulic fracturing. Environmentalists are also trying to scotch the construction of pipelines that would carry oil sands crude to U.S. refineries from Canada, where the company has sunk $5 billion in recent years to acquire undeveloped acreage.
"His favorite pet? Russia, where his relationship with Putin and Deputy Prime Minister Igor Sechin is "of the highest importance." . . . De Margerie's other major focus: Angola. Total gets a third of its daily output from Africa, more than any other supermajor. While Nigeria is the single largest contributor, it's a security nightmare; . . .
|Elf's Floch-Prigent taken to prison near Paris|
"Iraq and Iran, by contrast, are its crown of thorns. In the 1990s both Total and Elf negotiated with Saddam Hussein's henchmen for rights to develop the Majnoon and Nahr bin Umar megafields. At the time De Margerie was head of Total's upstream division and the point man for talks. Saddam was eager to get the French to sign a deal that would violate the sanctions against his regime. Total did, however, transport and market a lot of Iraqi crude during the U.N.'s oil-for-food program. In 2006 French authorities held De Margerie for questioning over payments allegedly connected to Saddam's siphoning of cash during that time.
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