B.C.’s revenue-neutral carbon tax has allowed British Columbia to reduce taxes for individuals, families and business.
Every dollar generated by the revenue-neutral carbon tax is returned to British Columbians through tax reductions. For the 2012/13 fiscal year, the tax reductions are expected to return $260 million more to taxpayers than the amount of carbon tax paid. In addition to the low-income climate action tax credit, other measures to mitigate the carbon tax for families include the up-to-$200 Northern and Rural Homeowner benefit.
As a result, B.C. now has the lowest income tax rates in Canada for individuals earning up to $122,000. The general corporate income tax rate in B.C. is among the lowest in North America and the G7 nations, and since 2001, B.C.’s small business income tax rate has been reduced by 44 percent.