A reader who prefers anonymity writes;
I have attached a brief math exercise of what I think may be the impact of the green shift tax. While I fully expect people to dispute the numbers that I used, i.e. the mark up percentages, I think that the basic logic is sound to support my calculations. I do not know what the real impact of the carbon tax will be but I do know that $15 billion of tax will pull a lot more money out of the economy than the initial $15 Billion, it seems that no one has analyzed this tax from a business model perspective.
"FF_Canuck" examines the gas tax angle;
As you know, Dion's new Green $haft includes a direct tax on diesel, but not gasoline. This is obviously going to have a disparate effect on Saskatchewan and Alberta, where we use more diesel in proportion to total fuel consumption, but I wanted some hard numbers, so I went to the Natural Resources Canada website here: (See Table 2.2)Posted by Kate at June 30, 2008 10:33 AMTurns out that Alberta and Saskatchewan are responsible for 20.7% of total automotive fuel consumption, and 27.7% of national diesel consumption. OTOH, Ontario and Quebec are responsible for 58.1% of total automative fuel consumption, but only 55.5% of national diesel consumption.
So, thanks to Dion's cynical exemption of gasoline, we pay tax on 133% of our total fuel consumption, while Ontario and Quebec pay for 95% of theirs.
I work full time. My wife works part time because we made the decision to have her stay home with the two kids as much as possible. We drive one car, which we own. Every day I use public transit.
I do not have 14,000 of financial fat to trim. The only way I can pay that is to stop investing in the education plans for our kids, ditch our only source of non-public transportation, ditch our house and stop buying clothing.
Stephane Dion wants us to live in a tent, wear hemp and force our kids to get student loans?
Posted by: mark peters at June 30, 2008 10:50 AMExcellent spreadsheet. The only tax that I am aware of that is revenue neutral is NO tax. Been around a while to have seen so many shell games by the liberals it makes my head spin.
This whole carbon tax is nothing more than a way to extract a shift load of our money to fund their wet dreams i.e. universal daycare(read institutionalized raising or our children) and further appeasement of Quebec and parts of Ontario that use little or no hydrocarbon energy for heating and power.But I am merely repeating what other more eloquent commenters have already said. I did need to vent and I thank Kate for the opportunity
Posted by: Olde Spice at June 30, 2008 10:51 AMThere are a few key points here which need discussion. First, will it in fact be the case that GST/PST will be levied on top of the carbon tax increase? This seems likely, as much of the carbon tax will be reflected in higher costs to producers. They in turn will have to charge more, and the result will be sales tax charged on the higher prices, a nasty little multiplier effect that the Green Shift doesn't mention.
Second, the raw cost of the tax and how much it pulls down in government revenue is one thing. What's left out entirely in all the media discussion is the impact on exports. This will simply drive up costs heavily for Canadian exporters, particularly those in finished goods in Ontario's manufacturing sector. That means loss of exports, which means loss of jobs and a consequent hit to GDP. By not imposing the tax on imports, the government is effectively reverse-subsidizing foreign competition against Canadian producers.
To my mind, the second effect will be far larger and more devastating than the first, bad though that is.
Posted by: cgh at June 30, 2008 11:00 AMExcellent spreadsheet.
Another point with Dion's tax is that the rebate will be different depending on how family income splits between spouses.
It implies of course that two identical families, same total income, different only in how their income splits, should be treated differently from the point of view of CO2 production.
It's absolutely absurd. And it's just another clue that this is really nothing more than a huge tax grab.
Posted by: TJ at June 30, 2008 11:07 AMI find it incredible that Dion even dares to say the word "tax" in a country where everybody forks over at least half their income in taxes already.
The incredible part is that he hasn't been crushed by an angry mob yet. Canadians have to be the dumbest dumb people on earth, I swear.
Posted by: The Phantom at June 30, 2008 11:16 AMThe whole pretext of a green shift *tax* has no merit.
Higher energy costs will shift consumer preferences quicker.
GM, FORD and Chrysler are seeing this first hand.
Any government intrusion into market commodities will COST everyone MORE.
Posted by: puddin and pie at June 30, 2008 11:42 AMIt’s all so marvelously simple. Assume there is global warming which is caused by CO2. Humans produce CO2. Therefore, make humans reduce the production of CO2 and all will be good.
Dim-witted people (that’s you and me) elect intellectually challenged politicians to do our bidding. They listen really hard and hear the greenie - wienies cry for taxing carbon. Perfect. The politicians get to satiate their drug-like addiction for more money and they get to blame us when the s**t hits the fan.
Pretty neat the way things work in a democracy.
Posted by: Rosco at June 30, 2008 12:06 PMThe green tax would cost me $7000 a year extra in fuel, not $1500 the liberals claim. I'm a truck driver.
Who do you think will pay for that?
Posted by: allan at June 30, 2008 12:08 PM"I'm confident we will have significant reductions. I'm not telling you specific numbers because you would not trust me,"
This is the line that just blows me away, talk about a hidden agenda.
Gord.
Posted by: Gord G. at June 30, 2008 12:32 PM"I'm not telling you specific numbers because you would not trust me,"
He might as well tell me now. I don't trust him now, I won't trust him then, what's the difference?
Posted by: Enkidu at June 30, 2008 1:02 PMSo what is the purpose on this carbon tax anyway? If it is to make you use less gas and other fossil fuels because you can't afford to heat your home and have a life at the same time, then I think it might work.
However, I guess that weekend trip to Lunenburg is out. That couple that run the bed & breakfast won't have our business which is a shame because with the carbon tax they have more expenses and a lot less customers. Same probably goes for the restaurant we were going to have supper in, the pub on the waterfront, the whale watching operator, that antique shop or those other stores along with the gas stations enroute. Who needs those pesky small businesses anyhow. That also goes for the suppliers of goods for those businesses too. Let them all go back and fish cod... oh, sorry, all gone.
That "revenue neutral" tax will sink the economy faster than the Titanic. Trickle down economics 101, folks.
btw, is anyone going to fine California for putting all those greenhouse gasses into the environment via those forset fires?
Posted by: Texas Canuck at June 30, 2008 1:31 PMphantom. canadians are the dumbest people on earth, next to the fwench. they keep thinking that the more they are taxed the better life will be. that if they give some mindless government employee control over their life things will be better. can you imagine anyone thinking that steffie et al are bright enough to even wipe someones ass. duh.
Posted by: old white guy at June 30, 2008 3:02 PMOops, it's not forset but forest... but you get the idea.
Posted by: Texas Canuck at June 30, 2008 3:52 PMUm... You do realize that a large number of BC trucks are registered in ALBERTA. The insurance rates are cheaper.
Posted by: [X] OTHER (Canadian) at June 30, 2008 4:17 PMBecause of the new green tax here in BC I only fill up after the long line at the border. For some reason its getting longer and longer, hmmmm.
Posted by: FREE at June 30, 2008 4:31 PMThis is beginning to sound like the old manufacturers tax that Mulroney abolished and replaced with the GST.
If I'm wrong someone please correct me.
As I understand it the old tax was placed on the manufacturer who then tacked on the price of goods that where sold and was then hidden in the cost of the goods we bought as opposed to imported goods which did not have this canadian tax applied to them. Hence our goods where at a disadvantage in the market.
Now it sounds like the liberals want to reinstate this tax under a different name like green"insert flavour of moment here" and apply a copious portion of guilt to those opposed to cover this tax grab.
There might well be a large number of BC trucks registered in Ab, but the fact is that about HALF (50%) of all the new trucks sold in the entire country of Canada are sold in Ab.
(Suck on that one Buzz Hargroove the next time you want to bad mouth the West)
Diesel is the fuel of the hard working people who get down and dirty in their work.
Trucking, Catting, Building, Farming, Drilling, Hotshotting, and just plain old having a good time.
And that's the reason diesel is the Breakfest of Champions in the wild wild West.
[quote]btw, is anyone going to fine California for putting all those greenhouse gasses into the environment via those forset fires?[/quote]
Texas Cunuck.
Why Fine? Beheading works for me. The twits can't manage their environment.. who knew!
Good Spread sheet but you missed some wealth that may be generated.. and possible good consequences.
Joe six pack jobs traded for R & D @ U of Sask.. This creates a special class "A LABOR POOL" that can be traded on the Commodities market. I.E. NJ needs Cranberry pickers in the bogs. Sask workers would be ideal because they like working in Chest Waiters (high arm pits) and love Snakes. The future is unlimited
If all the R & D is done at Universities; one University “may” succeed but the 99 % that don't succeed will have wasted public money, and can be fired.
The CBC would cease to Exist..No need to rally the Storm Troops
Al Gore can be traded for a Great Ape!
it's a shell game
Posted by: kelly at July 1, 2008 4:13 AM