Canadians have not really joined the dispute between carbon tax and ‘Cap and Trade’ yet. It is of increasing importance that they do. And while nobody really wants to choose taxes over industrial deals, there are good reasons for us to choose carbon taxes.
The primary reason why a carbon tax is the best answer is that the people paying these taxes will be able to follow what is going on. After all, what is easier to understand than a tax? Who collects it, who spends it and on what is public information.
‘Cap and Trade’ works like the con artists’ shell game: Now you see it; Now you don’t. This system is played out between the politicians and industry. It is the government and industry who negotiate the ‘Caps’ and then industry that makes the ‘Trades.’ One major stumbling block is industries that threaten to leave the country if their cap is too expensive for them. There are also industries that will not negotiate.
And how do you feel about politicians negotiating with the people who make campaign donations, offer politicians jobs after their public service and other favours?
What a carbon tax does is level the playing field. Both domestic and imported goods will pay the tax—and so will the consumer of both. Politicians can hardly be negotiating ‘Cap’ and ‘Trade’ deals with foreign manufacturers. Taxes that apply to all are not restricted under international trade agreements. And carbon taxes are easy for everyone to understand.
And what is particularly important to Canadians is that this country has an advantage in using carbon taxes. It is the fact that Canada has 80 per cent carbon-free electricity generation—one of the major carbon problems in other countries. Electricity in countries that use coal to generate electricity would not have our carbon tax advantage.
But the real advantage to a carbon tax is the impact it has on consumers. We will be able to see the difference between the highly polluting source of a product versus the ‘Green’ product. And do not feel badly that we, the consumers, are the ones paying the tax as we are collectively the worst polluters. The only hope to slowing down global warming is for all of us to change our habits. We have to burn less fossil fuels, use less polluting products, build energy efficient buildings and homes.
And with carbon taxes, we can see the progress that we are making in saving our planet.
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Copyright 2016 © Peter Lowry
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