Wednesday, June 18, 2008

A Few Quick Questions on Dion's Carbon Tax

If someone has to pay $1000 a year more because of the carbon tax, but get back $1000 through the proposed 'shifting'; where exactly is the incentive for anyone to decrease their carbon use? Or is that not what this tax is supposed to be all about?

Just how exactly are the many thousands of people who pay NO income taxes in this country going to benefit by tax breaks? How about those who do not even have a SIN#? Or are all of these people somehow magically exempt from paying the increased costs that are going to be passed on by business to the consumer as a result of this tax?

If this tax somehow does what it was intended to do and decreases our country's carbon output; wouldn't it be IMPOSSIBLE for the tax to remain revenue neutral? You cannot give back 14 billion in tax credits or through some type of creative tax shifting if there is not 14 billion coming in via the carbon tax. In theory the carbon tax revenue should decrease every year as we produce less CO2, but yet the tax credits are to remain the same or are to even increase to low income earners and those that pay no taxes. How can this ponzi scheme be maintained? Revenue neutral does not only mean that the government will make no money off of it, it also means that it will not cost the government any money as well.

Good luck with that.

And lastly, is it still part of the grand plan for a Liberal government to purchase carbon credits for us to reach our Kyoto targets?


Xereos said...

I think that the notion of "revenue neutrality" does not mean that if you pay $3k in carbon taxes, you get $3k back from other means.

I am reading this to say that people will pay $x dollars with the carbon tax, and that the government will return it back through programs and tax cuts, but not necessarily to the same people in the same proportion.

So, if that is truly the case, than this is another redistribution of wealth scheme, cloaked in a green blanket.

Ardvark said...

Well so far that is what I am hearing from the Liberals.

""Every taxpayer will be better off. That's the Dion goal,'' said Liberal MP Garth Turner, who's been helping with the communications strategy for the plan."

calgarygrit said...

1. Because the 1000$ you pay is based on your consumption, if you conserve energy, you’d wind up only paying, say, 800$ - that’s the incentive.

2. I guess we’ll need to see the plan details, but rumours are it will have some sort of rebate for low income Canadians or might be combined with the Liberal poverty plan.

3. Valid point. I presume the tax cuts would decrease, or it would just turn into a de facto tax cut, which Conservatives should like.

Matt said...

How I undestand it is this - It's (claimed to be) revenue neutral from the GOVERNMENT'S perspective. It will still be very possible for people to come out worse off as money is redistributed to individuals who live "environmentally conscious" lives.

Dion cannot escape the fact that this policy is either a cash cow for the federal government or a massive wealth distribution plan veiled as a carbon tax. Likely it is probably a bit of both of these things.

Matt said...

And lastly, is it still part of the grand plan for a Liberal government to purchase carbon credits for us to reach our Kyoto targets?

A carbon tax would certainly help raise the cash required to purchase hot air from China and Russia!

Ardvark said...

CG, do I still get back $1000 if I do conserve and only spend $800? If that is so, it makes my later point that this entire thing is a big ponzi scheme. This cannot possibly be maintained.

Anonymous said...

People on disability pensions, many widows and those who retired years ago are among the millions who do not pay taxes and so they would see no reduction in their taxes. They would see a new consumption tax added to the existing consumption tax and no real benefit from it. These people still have to heat their homes/apartments and eat.

Typical Liberal move, but. They love taxes.

Anonymous said...

Yes you will get back the extra $200, and those who do not pay taxes will get free money as well.

The big evil corporations will pay and they will not pass this cost on to us nor will they lay off workers, or just leave Canada to cover these added costs. No, not going to happen. The Liberals have said so.

It is another foolproof Liberal plan in a long list of great accomplishments that have made this country the panacea that it is. Why not believe them again?

Ardvark said...

Any idea what this tax, not a 'shift' but a tax, is going to do to the rate of inflation in this country?

You can't pull 14 billion out of the economy, all of which will come out of our consumer pockets, and not expect it to create chaos.