Monday, May 26, 2008

 

Revenue Neutral Carbon Tax?

Is the national liberal Revenue Neutral Carbon tax really revenue neutral or just a redesign of the system to the benefit of the majority provinces in a vain attempt to steal from the minority and give to the majority in the national parties never ending bid for power?

In other words just national energy program 2 on a larger scale. Not unlike the redesign of the Social and Health transfers to a per capita formula of transfers.

My understanding of the Liberal plan is that they want to lower income taxes for the majority and increase carbon taxes as an offset.

While this might sound good at face value but if one looks deeper and considers who will actually be impacted by this tax shift it becomes obvious that this is just one more attempt by a national party to buy votes in the majority provinces at the expense of the minority provinces.

Who has all of the carbon energy that is going to be taxed? Alberta, Sask, NS, BC, and NL.

Who has the majority of high income tax payers? Ontario and Quebec.

Who uses the most carbon on a per capita basis. The minority provinces because their populations live in mostly rural northern climates. Minority provinces due to their small populations and large geographic areas don't have large scale public transit if any at all in the case of NL which no longer has a railroad. CN Continental National.

Minority provinces have resource and commodity based economies that are highly reliant upon carbon to fuel them whereas the majority provinces have service and manufacturing based economies which can make use of carbon free energies like nuclear and Hydro as well as their federally offset funded public transit.

This new plan the national liberal party is trying to push is nothing more than the status Quo of Democratic Discrimination by the national parties against the minority provinces in favor of the majority provinces by the national parties to redesign the system so as to pander to the majority provinces where 181 seats out of a possible 308 at the expense of the minority provinces.

To top it all of it does absolutely nothing to address the real problem and present solutions to get us off of a carbon based economy.

Not one mention of a national energy corridor or help with the development of the worlds last best undeveloped hydro project the Lower Churchill with Loan guarantees basically co-signing.

To date there are only three options as I see it.

1, Revenue neutral bells curve tax re-appropriation.
2, Cp and trade a internaional global solution but still doesn't address or resolve the cause in that it doesn't provide or even promote a solution to getting us off our adiction to fossil fuels energy.
3, User Pay toll highways. Seeing as 2/3's of all fossil fuel energy is used for transportation purposes. You will never see this one in canada because it would mean the majority provinces would have to pay their fair share.

Producers vs consumers economies?

The only fair and equitable system to our people and our economy would be consumers pay seeing as we export a good portion of our fossil fuels. Anything less would be just Energy plan II and a reinstatement of a manufacturing tax through the back door geared towards stealing from the minority resource rich provinces in favor of the majority consumer provinces and would harm our national economy.

Besides don't we already have a carbon tax? Something like 30% of what you pay for at the pumps is taxes.

First things first. Nay use of carbon for purposes where here is an alternate clean energy resource available should be taxed. IE home heating stationary uses. Assuming carbon isn't being used to create the stationary energy sources. Coal and bunker C energy production would get taxed in favor of renewable energy sources.

While this would only be 1/3 of all carbon energy usage it is a usage that isn't absolutely necessary at this time and as such should be discouraged in favor of cleaner energy sources.

Cap and trade is designed to punish producers while consumers get of scott free and will continue their lifestyles unfettered.

Dual unidirectional Railroad tracks across the entire federation.
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