Vaughn Palmer: Mark Carney promises to end the tax. B.C. plans to follow, but isn't saying how it would manage a huge budget hit
The B.C. NDP government's plan to eliminate the carbon tax, as promised, remains unclear in the recent provincial budget. While Premier Eby states B.C. will remove the tax when the federal backstop is repealed, the budget forecasts continued carbon tax revenue growth. Mark Carney's promise to eliminate the federal carbon tax adds complexity. Questions arise regarding how B.C. will replace lost revenue, whether consumers will be fully relieved, and the fate of the climate action tax credit. Options for replacing the lost carbon tax revenue include using contingency funds, increasing taxes on industry, or increasing the budget deficit.
