her·e·tic  
– noun

anyone who does not conform to an established attitude, doctrine, or principle.
Climate from a New Perspective

www.theclimateheretic.com was Last updated on May 11, 2008

BC Carbon Tax Based Budget Effects Simulator

The new BC budget includes a revenue neutral carbon tax, this simulator applies the effects of this tax across the province to show how this tax will be applied. This simulator only graphically represents the distribution of the tax load under the assumption of revenue neutrality.

I have set up this simulation to show the different effects based on geography and population distribution using average income. This can only be applied to individuals as business tax loads are still coming in the form of a Cap and Trade system. This is not an actual representation of the actual dollar values, the amounts are used for illustration purposes only, but shows a relationship between the tax burden based on changes in consumption behaviour.

Variables for Simulation

 Price Per Tonne C  Region 1 Consumption Change %  Region 2 - Consumption Change %
 % ex (-10 = Minus 10 %)  % ex (-10 = Minus 10 %)

Output per Region - Distribution of Tax (Based on Fiscal Year)

Region 1 - GVRD / Victoria   Region 2 - Rest of the Province  
Price per Tonne 10   Price per Tonne 10
Consumption Currently 150   Consumption Currently 198
Consumption Change 100%   Consumption Change 100%
New Consumption 150   New Consumption 198
Current Population 1770500   Current Population 495800
Current Tax Burden $5,234,236,420.60   Current Tax Burden $1,465,763,579.40
New Tax Burden $5,048,316,342.94   New Tax Burden $1,651,683,657.06
Tax Burden Change ($185,920,077.66)   Tax Burden Change $185,920,077.66
         

Neutrality Check

Starting Tax Revenue is $6,700,000,000.00
Ending Tax Revenue is $6,700,000,000.00

Assumptions

Starting Tax Burden Region 1 Consumption per Capita Region 2 Consumption per Capita
$6,700,000,000.00 150 198
Total Tax Revenue Total Population (Tax Payers)  
$6,700,000,000.00 2266300