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Old Posted Apr 15, 2019, 6:28 PM
Curmudgeon Curmudgeon is offline
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Whether or not you believe that implementing a carbon tax at this time is good public policy for Canada, I don't think there's anyone who can reasonably conclude that a carbon tax will be effective, it will have ZERO effect on lowering global CO2 emissions. Many argue that implementation of carbon taxes in relatively efficient western nations will increase global emissions as production shifts to locations where a carbon tax is not imposed.

Increase in total fossil CO2 emissions 1990-2017:

Top four western economies

United States 0.4%
Japan 15.0%
Germany -21.8%
United Kingdom -35.7%

Canada (7th) 35.0%

China 353.7%
India 305.1%

At the moment people are simply moaning as the sting is yet to be felt. The top roughly 20% will virtue signal as the tax will not be a significant impediment to that demographic's living standards, they will simply direct their consumption habits to increased efficiencies. The bottom 20%, those who are generally renters and do not own private transport will likely not be affected to any great degree and may come out slightly ahead due to the rebates. These are the people on this forum who insist, despite much evidence to the contrary, that the tax is completely revenue neutral. They have "drunk the kool-aid". It is the middle 60%, the working class and the broad middle class who will feel a palpable decline in living standards, as many are already struggling to make ends meet and are unable to afford the expenditures necessary for increased efficiency in the home and for transportation. Also, many in this group are also likely to suffer negative financial consequences from real estate asset depreciation that is occurring and expected to continue in several major Canadian markets in the near future. The carbon tax will also be very detrimental to rural and small town economies, particularly outside of the southern Ontario/southwestern Quebec heartland.

By 2022 the carbon tax is planned to rise to $50 per tonne from the current $20 per tonne, a 150% in just three years. Unless there are significant increases in wages, and that is very unlikely given expected economic performance (Canada is in a per capita recession...but you won't hear that on the sycophantic CBC) the decline in living standards felt by the majority will result in incredible political pressure either to alleviate the burden on the majority (increased rebates and sector subsidization) or to scrap the tax altogether as was done in Australia. Canadians are very sensitive to the country's economic performance, currency value, standard of living and prices vis-a-vis the U.S.

Canada can reduce carbon emissions and maintain economic growth by encouraging increased efficiencies in transportation, agriculture, residential usage and industry over the long term and by following a sensible population strategy, one that reflects the needs of the Canadian economy. An investment rather than a punitive focus.

Last edited by Curmudgeon; Apr 15, 2019 at 8:14 PM.
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