There is always a danger in critiquing someone's work as I might not get everything exactly right or might not be using the same data set. After last week's column, Mr. Elgie wrote a letter to the Citizen pointing out that in his opinion I had made some faulty statements.
In particular, he quibbled with my choice of StatsCan data sets. I used GDP data from 2008 to 2012 to show that the B.C. economy had lagged significantly behind the rest of Canada. I thought that it was important to include 2008 data as that was the start of the Carbon Tax.
Mr. Elgie felt that I should have used a more recent set, suggesting CANSIM 379-0030. He felt this more recent set would support his claim that the British Columbia economy had "outstripped" the Canadian economy.
I looked at CANSIM 379-0030. Using it, I get that from 2009 to 2013 British Columbia's GDP increased by 10.03 per cent while Canada's GDP increased by 10.29 per cent. I am not an economist but I think even an economist might agree that 10.29 is larger than 10.03. Further, I am fairly sure not too many economists would claim that a growth of 10.03 per cent had "outstripped" a growth of 10.29 per cent.
Growth in the B.C. economy has lagged the rest of Canada. We have had a miserable few years and trailed, instead of led, Canada.
Maybe if we hadn't had the carbon tax things wouldn't have been any different. Or maybe not having the lowest personal income tax rates would have meant we would be much worse off. But I doubt it.
Further, the carbon tax isn't really used to offset personal income tax. In the 2013/14 budget estimates, carbon tax revenue is given as $1.187 billion.
Instead of going to personal income tax reductions resulting in lowest personal income tax rate in the country, that money is spent on a low income climate action tax credit of $115.50 per adult plus $34.50 per child; a five per cent reduction in the first two personal income tax rates; B.C. Seniors Home Renovation Tax Credit; Children's Fitness Credit and Children's Arts Credit; small business venture capital tax credit budget increases; and Training Tax Credit for Individual. The total for these tax measures is only $568 million.
There is also something called the Northern and Rural Homeowner Benefit, but I don't know anyone who has heard of it, let alone been sent a cheque for up to $200. Who qualifies?
What about the rest of the money? There is still $617 million - the larger share - still on the table. Where is it going?
About $150 million went to General Corporate Income Tax cuts while $200 million was provided for a small business income tax cuts. That is $350 million of the total.
There are also a number of property tax and school tax credits along with $70 million for the Film Incentive B.C. Tax Credit and $88 million for the Production Services Tax Credit. Not even sure what the last two are but I would be willing to bet that they are part of the government tax credit programs.
This is all revenue neutral according to the proponents of the carbon tax. Money leaves my pocket and ends up in the pockets of corporations and the film industry. I am pretty sure that means that I am paying them.
But from a government point of view, they are not keeping any of the money so that must be revenue neutral.
Has the carbon tax harmed the B.C. economy? Who knows? Testing that statement is not an experiment that can be done. We can't go back six years and do it again without the carbon tax to see if things would have turned out different.
However, it has certainly done nothing to really address the issues at the heart of the global problem. And that is more the shame because B.C. could have been in the lead if we had simply had a little more vision in government.
On a personal note, I arrived in Prince George on Aug. 1, 1994. Last Friday marked my 20th anniversary in this town. I came to take up a post at UNBC and despite all of the turmoil over the years it has never crossed my mind to leave.
Prince George has grown up and changed much over the past 20 years. I would like to believe that the university had some small part to play in that process but there are many features of this town such as the courthouse and Two Rivers Art Gallery that have also been part of that maturation.
However, I really do believe it is the people of this great city that make it such a good place to live. I look forward to spending the next 20 years getting to know more of you.
