What is a carbon tax? What will it do? Do Canadians want this?
First, a little history and a brief explanation of a carbon tax. A carbon tax is an example of a Pigovian tax, created by British economist Arthur Pigou. When an activity has a negative social cost, Pigou argued that it “should be taxed because that provides an incentive to stop the social harm and move to more positive alternatives” (Carbon Taxes).
Liberal party leader, Stéphane Dion, wants to implement a tax on damaging fossil fuels in hopes of reducing greenhouse gas emissions and combating climate change. The so-called “profits” from this tax jive with the idea that the “polluter pays” for green initiatives. So, is this a good thing? Should Canadians support this tax?
Many environmentalists have been advocating for a way to change industry and consumer behaviour to be more energy efficient. Therefore, they believe this tax will help Canada drastically reduce greenhouse gas emissions and ultimately comply with the requirements of the Kyoto protocol. An article written by Philippe Crabbé, an Economics professor at the University of Ottawa, lists various reasons why Canadians should adopt the Dion carbon tax; renowned economists support it and it is Dion’s response to a Conservative request for a way to cut greenhouse gases by 60-65 % in 2050, an international target.
On the other hand, the Conservative website refers to the tax as a “permanent new job-killing tax on gas, electricity and everything else that [consumers] buy.” In an article by CBC.ca, Harper says the tax will “screw everybody” and will “recklessly harm the economy and the economic position of every Canadian family.” Others who oppose the proposed carbon tax believe it would be the single largest tax hike in Canadian history and would only serve to provide Dion with the money his party so desperately needs.
Personally, I was initially against the tax because it meant higher prices for essential energy items—and I don’t know about the rest of you, but higher anything means more working hours! However, now that I have read both sides of the argument, I am in favour of the tax. Sure, money is a tough issue, but I would rather work a little harder and pay a little extra if it meant helping to create a healthier environment for our future generations.
Erin
Sources:
“Carbon taxes: Cash grab or climate saviour?” CBC.ca. 19 June 2008. CBC News. 29 June 2008 http://www.cbc.ca/canada/story/2008/06/18/f-carbon-tax.html
“Dion Carbon Tax.” Conservative.ca. 20 May 2008. Conservative Party of Canada. 28 June 2008
Crabbé, Philippe. “Dion's carbon tax plan is brilliant.” Ottawa Citizen. 29 June 2008. CanWest Publishing Inc. 29 June 2008 http://www.canada.com/ottawacitizen/news/letters/story.html?id=89991fa0-c406-4f33-930b-928a20529558.
“PM: Dion's carbon tax would 'screw everybody'.” CBC.ca. 20 June 2008. CBC News. 28 June 2008 http://www.cbc.ca/canada/story/2008/06/20/harper-carbon.html?ref=rss
4 comments:
Erin, this Dion Carbon Tax issue is one of the most rediculous things I have ever heard of. I think that the government should be concentrating on getting our petroleum costs back down to a resonable level. If they want to put another tax to make some other rich white guy richer, Canada might be losing some of its well structured economy.
There must be some validity to this Liberal position. Why else would the Conservatives spend so much money on vehement attacks on the idea.
I support the carbon tax. The only way a large section of our population will stop polluting is to make them realize what they are doing to our planet. In our world today, most people are oblivious, if it's free or doesn't cost much they don't care. They Use it, waste it, and don't look at the consequences. Just look at how many cars are on the road with only 1 person in it. Much can be done to reduce just car emissions.
I think Carbon Tax is the best idea anyone in the government has come up with in a while. We already know that people don't usually do the right thing on their own. The only way we are going to stop high consumption is to make sure that no one can afford it. If it cost extra for gas and energy, think about of extra people who would carpool, ride the bus, turn off their lights, or buy smaller houses. All of which are good for everyone. Also, if carbon is more expensive maybe we will finally see some alternatives to oil and gas. Electric and hydrogen cars, windmills, solar panels, doesn't that sound like an a Canada you'd want to be a part of? For more on this subject http://rachaelandirindeep.blogspot.com/2008/06/are-you-gassy.html
-Rachael
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