Carbon Pricing: You’ve Got it Wrong, Mr. Falk

It is with great disappointment that I note that your party has decided to oppose the Liberal Carbon tax by portraying it as a tax grab. The government is saying this tax will be revenue neutral – that is it will not be an increased tax [tax grab] but a tax shift. There is nothing inherently conservative about opposing a tax shift and my hope is that Canadians will see the shallowness of this approach, and reject it even as they rejected your party’s scare mongering about Justin Trudeau’s youth and Islamic immigration in the last election.

Justin Trudeau has said the tax is to revenue neutral. (Note that I am using the word ‘tax’ rather than the term ‘carbon pricing’, because I agree with you: Mr. Trudeau is proposing a tax on carbon.) According to the announcement, the provinces, not the Ottawa government will determine whether the this new tax will in fact be revenue neutral.

We know that BC has had a carbon tax since 2008. This tax has not been a tax grab. It has been revenue neutral. The BC government has reduced corporate and income taxes by an amount equivalent to its carbon tax. BC now has the lowest personal income tax rate in Canada, and one of the lowest corporate rates in North America. Your insistence that this new tax is a tax increase is scare mongering, and is not a service to the Canadian people nor to the conservative cause.

We also now know that the BC tax has affected behaviour (which was its intent). Since the tax came in, fossil fuel use has dropped in BC by 16 percent; in the rest of Canada it has risen by 3 per cent. And this has not been because the BC economy has been sluggish. In fact BC,s GDP has slightly outperformed the rest of Canada since 2008.

It is misleading and a disservice to both the Canadian people and to the conservative cause to assert, as you are, that the carbon tax will take money out of the pockets of Canadian people, thereby killing jobs. Yes, the carbon tax will take money out of the pockets of some Canadians: those Canadians and those Canadian companies using large amounts of fossil fuel, but it will put that same amount of money into the pockets of other Canadians and Canadian companies economizing on fossil fuel. You seem to be suggesting that in order for our country to continue to prosper, we need to continue subsidizing energy guzzlers and penalizing energy economizers. I hope Canadians, including conservative Canadians will see through the shallowness of that argument.

I have referred above to Mr. Trudeau’s carbon plan as a carbon tax. Mr. Trudeau calls it a ‘Price on Carbon’. I think he is also correct Anyone burning fossil fuel, simultaneously does two negative things: he is putting greenhouse gases into the atmosphere, and he is making this valuable fuel unavailable to future generations. But he is not paying for this detrimental activity. Society in general pays and future generations will pay for this. Surely you, as a conservative, agree that this is neither right nor efficient. A price on carbon corrects this injustice, at least up to a point.

I see nothing conservative about the current norm where the primary source of government revenue is a tax on income and a tax on profit. On the other hand, a tax on the consumption of a scarce resource builds on sound conservative values. This is a call for you to return to your conservative roots and embrace a tax shift that would be good for the country now and even better for generations to come.

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2 thoughts on “Carbon Pricing: You’ve Got it Wrong, Mr. Falk

  1. I am curious as to where this “carbon tax” money is going to go. If here in Manitoba, the heavy construction industry, transport, portions of agriculture are going to be paying for putting carbon in the atmosphere. Will the federal government then also turn around and pay those industries who are putting carbon back into the ground?
    If we can charge people a tax, say $20-30.00/tonne of carbon burned, can we not also pay the people who put that carbon back into the ground.
    If the money collected only goes into federal coffers then it its just a carbon tax. If the money truly does work in both directions which encourages people to consider fossil fuel use as well as production models which in fact reduce greenhouse gas levels then it is not a carbon tax. But if the money only goes in one direction, and that direction is into the hands of the government, then it is a carbon tax.

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