In Olympia, Gov. Jay Inslee is pushing lawmakers to enact a new tax on carbon gas emissions before the Legislature adjourns on March 8.
Inslee wants Democrats, who now control the Legislature, to approve a $20 metric ton levy. He says it’s necessary to combat the effects of climate change and would start in 2019. There would be no corresponding tax offsets as provided in British Columbia and under I-732, which is the ballot measure Washington voters rejected in 2016. Nor is there a cap on future tax increases.
The additional money would go to pay for projects that reduce greenhouse gases, manage stormwater, and reduce wildfire risks. Unlike British Columbia’s scheme, Inslee’s plan includes exemptions for aviation petrol and fossil fuels used in agriculture.
The governor’s office reported the tax increases on consumers would range from 4 percent to 5 percent for electricity, 9 percent to 11 percent for natural gas, and 6 percent to 9 percent on gasoline.
“Over four years, the tax would generate $3.3 billion. Averaged across the state’s 2.7 million households, that’s about $1,200,” Seattle Times columnist Brier Dudley wrote in late December.
Dudley found British Columbia’s carbon levy is failing to reduce carbon pollution as promised. “Emissions from driving are rising faster than population growth in B.C., despite a carbon tax higher than Inslee’s proposal.”
British Columbia isn’t likely to meet its 2020 carbon-reduction goals.
The carbon tax isn’t the only costly climate-oriented proposal in Olympia this year. Simultaneously, other legislators are pushing a low carbon fuel standard.
If lawmakers approve both taxes, Washington families could be facing 35 cents to 45 cents more per gallon at the pump—on top of the 68 cents we already pay in federal and state gas taxes.
Then there is the tax cap issue. Without a cap, British Columbia’s rate went from an initial $10 per ton (Canadian) to $30 by 2012.
Carole Taylor, the provincial minister of finance when the legislation was approved, told the New York Times the parliament “provided critical political cover by ensuring every single carbon tax dollar would be returned to families and businesses through a variety of breaks.”
Even though Canadian tax advocates insist it works, they’re seeking an overhaul and rate increases in hopes of meeting future climate and revenue goals.
Before our state lawmakers pass a tax proposal of this magnitude, they need to look at the progress our state already is making on reducing greenhouse gases and ask if it’s needed.
While Washington’s population has increased 43 percent since 1990 and the economy has grown by 260 percent, carbon emissions are down by 18 percent, according to the EPA.
The key question is whether Washington’s carbon tax is simply an added way to fund state government. If it is, lawmakers need to make to their case to voters at election time.
Don C. Brunell is a business analyst, writer, columnist, and former president of the Association of Washington Business.
He can be contacted at theBrunells@msn.com.