Carbon Taxes: The Washington state experience

OTTAWA, ON: The Canadian Taxpayers Federation (CTF) has launched a cross-country tour with Todd Myers, Director for the Center for the Environment at the Washington Policy Center, to share lessons from his state's experience with carbon taxes.

In November 2016, Washington state voters rejected Washington Initiative 732, which would have made Washington the first U.S. state to impose a direct carbon tax, beginning at $15 per ton and rising to $25 per ton in the second year, together with offsetting reductions in business and sales taxes. The measure was defeated with 59 per cent of voters opposing it. Notwithstanding this result, Democratic Governor Jay Inslee proposed to proceed with a $25 per ton carbon tax. That bill died in March 2018 when it was unable to secure enough votes from the Democrat-controlled state Senate to advance it to the Democrat-controlled House. "If one of the most progressive states in America, with a Democratic governor and Democrat-controlled legislature won't even impose carbon taxes on their people, the odds of carbon taxes coming to America any time soon are slim to none," said CTF Federal Director Aaron Wudrick. "Canadian policymakers who are pursing carbon taxes are putting Canadians at a major disadvantage." "Washington state voters rejected even a revenue-neutral carbon tax," said Myers. "Additionally, carbon tax increases tend to spend money on projects and subsidies that have high costs and offer little environmental benefit." The CTF's tour with Todd Myers starts Tuesday in Ottawa, continues to Toronto on Wednesday and Regina on Thursday.

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