The Benefits to You and Your Family

The revenue neutral tax on carbon emissions allows British Columbians who reduce their carbon emissions to enjoy real tax savings. While everyone, including business, pays the carbon tax, making climate smart choices will help ensure a strong future, where British Columbians will benefit from having more money in their pockets while contributing to a greener future and a cleaner environment. For more information on how to make green choices that save money at home, at work and on the road, visit the LiveSmart BC web site.

The following scenarios will help you see how you and your family can benefit from the tax reductions made possible by the revenue-neutral carbon tax:

Carbon Tax and Tax Cuts

Family of four: $90,000 income (one spouse earning $50,000 the other $40,000)	2009
One-time Climate Action Dividend	-
Personal income tax cut	224
Carbon Tax on:
Van: 10 litres/100km fuel efficiency driving 20,000 km/year	-59
Sedan: 9 litres/100km driving 15,000 km/year	-39
Natural gas for heat and hot water (102.6 GJ in Lower Mainland)	-64
Annual Savings	$62

Family of four with boat: $120,000 income (both spouses earning $60,000)	2009
One-time Climate Action Dividend	-
Personal income tax cut	358
Carbon Tax on:
Sedan: 9 litres/100km driving 20,000 km/year	-53
SUV: 12 litres/100km fuel efficiency driving 30,000 km/year	-105
Runabout (water skiing 3 hours per week for 8 weeks @ 30 litres per hour)	-21
Natural gas for heat and hot water (80.3 GJ in Inland interior)	-50
Annual Savings	$129

Family of four: $70,000 income (one earner)	2009
One-time Climate Action Dividend	-
Personal income tax cut	201
Carbon Tax on:
Pickup truck: 12 litres/100km fuel efficiency driving 20,000 km/year	-70
Sedan: 9 litres/100km driving 21,000 km/year	-55
Propane for heat and hot water (58 GJ in Revelstoke)	-44
Annual Savings	$32

Single income family of four: $80,000 income	2009
One-time Climate Action Dividend	-
Personal income tax cut	224
Carbon Tax on:
Pickup truck: 14 litres/100km fuel efficiency driving 20,000 km/year	-82
Sedan: 9 litres/100km driving 20,000 km/year	-53
Natural gas for heat and hot water (142 GJ in Fort Nelson)	-88
Annual Savings	$1

Two earner family of four: $60,000 income	2009
One-time Climate Action Dividend	-
Personal income tax cut	118
Carbon Tax on:
Van: 10 litres/100km driving 20,000 km/year	-59
Natural gas for heat and hot water (84 GJ East Kootenays)	-52
Annual Savings	$7

Single parent with one child: $30,000 income	2009
One-time Climate Action Dividend	-
Personal income tax cut	33
Low income climate action credit	205
Carbon Tax on:
Older vehicle: 12 litres/100km fuel efficiency driving 20,000 km/year	-70
Electric heat and hot water	0
Annual Savings	$168

Senior couple: $30,000 income (equal pension incomes)	2009
One-time Climate Action Dividend	-
Personal income tax cut	0
Low income climate action credit	205
Carbon Tax on:
Older vehicle: 12 litres/100km fuel efficiency driving 7,000 km/year	-25
Oil furnace (2,000 litres) and electric hot water tank	-67
Annual Savings	$113

Single Senior: $30,000 income	2009
One-time Climate Action Dividend	-
Personal income tax cut	43
Low income climate action credit	103
Carbon Tax on:
Older vehicle: 12 litres/100km fuel efficiency driving 7,000 km/year	-25
Oil furnace (2,000 litres) and electric hot water tank	-67
Annual Savings	$54

Single Individual under age 65: $40,000 income	2009
One-time Climate Action Dividend	-
Personal income tax cut	90
Carbon Tax on:
Sedan: 9 litres/100km driving 20,000 km/year	-53
Electric heat and hot water	0
Annual Savings	$37

Single Individual under age 65: $80,000 income	2009
One-time Climate Action Dividend	-
Personal income tax cut	224
Carbon Tax on:
Sedan: 9 litres/100km driving 12,000 km/year	-32
Electric heat and hot water	0
Annual Savings	$192

* Carbon tax is $15 per tonne of CO2e emissions effective July 1, 2009.

Natural gas and propane consumption are estimates of actual use from Terasen Gas and Pacific Northern Gas except in the case of the two-earner family of four with $60,000 which is based on typical heating use examples from Terasen’s website.

The relative impact the carbon tax has on British Columbians living in different regions of the Province is subject to many variables, depending on circumstances. However, it is important to note that on average, commuting distances for residents of municipalities in the Lower Mainland are among the highest in the province. Commuting in traffic is also less efficient, so more fuel is used per kilometre in the Lower Mainland than elsewhere in the province because of idling and traffic congestion. Finally, homes that are heated with natural gas will be subject to the carbon tax, while those using electricity will not. Residents of the Lower Mainland use more natural gas per household than most other regions of the province.