D'rok
Free Barbarian on The Land
- Joined
- Dec 29, 2006
- Messages
- 6,399
Well, keep in mind that it was you that was accusing me of not reading or understanding the green plan. I wanted to emphasize that not only have I read the plan, I've done a bit more indepth analysis than just reading the Liberal talking points.
Sorry about that. You've obviously read it and thought about it. I misunderstood your original post.
You are completely discounting the possibility of innovation, development of new technology, and a re-orientation towards efficiency. Part of the purpose behind the tax is to incentivize that sort of behaviour and to discourage some current practices. A tax like this could potentially be an agent of positive change.I wouldn't necessarily consider this a 'trickle down' argument... I've been concentrating on just 2 main carbon producers... heating fuel (for which there is a fairly direct link between the producer and consumer) and electrical generation (which are typically provincial utilities and thus have a fairly, ahem, intimate relationship between supplier and consumer).
I could have attempted to also include carbon emissions by other areas of the economy, but that would have been very complex, and pretty pointless (since all areas of the country have carbon-emitting manufacturing/farming/resource based activities. I was concentrating on the items where the cause and effect were most obvious.
Well, first of all, I didn't go into detail about all costs to the industry. I concentrated on heating fuel (which the Liberals themselves predicted would see an increase due to the carbon tax), and electricity. Provicinial power companies don't (or at least shouldn't) be operating at a profit, so either they will have to pass any cost increases onto the consumers (many of them residential or government), or operate at a deficit (which eventually requires us to pay through provincial taxes.)
Secondly... even if I was talking about corporate emission of carbon and not residental, why exactly do you think that the carbon taxes won't be passed on to the user in some way? If you increase costs (e.g. increased fuel costs due to carbon tax) there isn't that much that can happen. Either:
- Costs are passed on to the consumer
- Profits are cut (which means that anyone who has a pension plan or RRSPs will see their investment returns diminish)
- The company decides to shift production to some part of the world where production is cheaper.
In other words, you are ignoring the possibility that industry costs could be reduced or offset through flexibility, innovation and adaptation.
I have no problem with that. If one accepts the premise that carbon-intensive industries are causing environmental problems, then those industries should be shouldering some of the burden.Yeah, companies will get a corporate tax cut to partly offset the costs of the carbon tax, but its the same situation I described earlier... companies in provinces with high usage of hydro will come out better off than companies in provinces where fossil fuel is used.


Trudeau.