What’s bothering you about the carbon tax?

Share

Is it the same thing that’s bothering me?

Taking the carbon tax at face value it all appears to make sense.  You pollute, you pay.  Pretty simple.  And, the money collected from the tax is used to clean up the pollution and develop/promote clean energy technologies.

Move away from burning fossil fuels and onto cleaner energy production.

End result, a clean environment.

All sounds good.  Then what’s bothering me about it?  What is it that just doesn’t seem right?

Do we get a refund?

Here’s my concern.

Let’s advance the clock by 11 years.  Now, we’ve been living with the carbon tax – or something that looks like it – for over 10 years.  How’s it going?

What if the carbon pollution problem is worse?

What if all the taxes collected did nothing?

What if we’re still reliant on fossil fuels; burning more than we do today?

That means 10 years of wasted money.  10 years of paying an artificially high price for energy.  10 years of the government collecting money and wasting it.

So, if this happens, will the government give the money back?  Do we get a refund?

That’s Rediculous!  Won’t happen!

I read you loud and clear.  You’re saying, “Rediculous!  It won’t happen!”

And, I agree.  The government will never refund the taxes!

Oh, you’re talking about the pollution.  Sorry.  You’re saying the government carbon tax will work.  It will lead to lower carbon emissions and lower overall air pollution.

I hope you’re right.  I definitely want to see less reliance on fossil fuels and less air pollution.

But, after reviewing the government carbon tax proposal, I have doubts about the sincerity of their approach.

Are you serious?

The government carbon tax proposal doesn’t appear genuine to me.  After reading the government pamphlet I’m left asking the question, “Are you serious?”

Are you (the government) serious about reducing carbon emissions?  Your proposal suggests you’re not.

Consider the following:

Only the top 500 or so polluting companies have to pay the tax.  But, they get to pass this cost onto customers if they choose.  And, why shouldn’t they?  Why wouldn’t they?  After all, the carbon tax is just another production cost.  Production costs drive price.  If production costs go up, so do prices.

But, these price increases shouldn’t matter too much to consumers because the governemnt is offsetting them.  You see,  under the carbon tax proposal, consumers get tax rebates and/or tax cuts.

So, the carbon tax doesn’t really seem to negatively affect the top 500 polluters – the ones paying the tax – nor the end consumer – the ones really paying the tax.  After all, the producers pass on cost to the consumers, and the consumers get tax breaks to offset the higher end costs.

This begs the question … what’s the tax for?

What’s the incentive for consumers to look for alternate cleaner energy sources?

As long as consumers are subsidized to purchase “dirty” energy, then why would producers stop producing it?  Why would consumers stop buying it?

No Carbon Tax on Petrol … you’re kidding right?

Let me get this straight.  One of the biggest – if not the biggest – contributor to carbon pollution is automobile exhaust.

But, the carbon tax proposal does not include petrol.  Petrol is off the table.  Not going to be “carbon” taxed.

And, I ask … “WHY?”

Why would you not tax one of the biggest contributors to carbon pollution?

That would be like having a tobacco tax but not taxing cigarettes.

Are you serious or not?

The government says half the carbon tax collected will go back to the consumers (rebates or tax cuts) to offset the higher energy costs.

Really?

Doesn’t this defeat the purpose?

Isn’t this like giving smokers a tax rebate to offset the cost of higher cigarette taxes?  Do you want people to quit smoking or don’t you?

Do you want people to turn away from burning fossil fuels or don’t you?

Why would you not “carbon tax” (it’s a verb now) petrol?

Seems a bit disingenuous to me.  It’s as if the government is trying to slip one past us.  They’ve seen an opportunity for a tax grab.  And, they’ll do it by claiming to share the proceeds with us.  Why do I feel like I’m in the movie “Pirates of the Carribean” and pirate Jack is giving me a cut of the stolen spoils?

By the  way, I have a theory about why the government is not including petrol in the carbon tax proposal.  Read Why no carbon tax on petrol? to find out.

I Hope it Works!

I hope the carbon tax proposal works.

But, I have doubts.  Especially, when the government proposal includes some contradictory approaches.

For instance, the government admits there will be energy price increases under the new carbon tax.  So, to offest these higher costs, the government proposes a two prong approach.  First, share the carbon tax proceeds with consumers.  Next, introduce tax cuts.

Now I’m confused.  Why does the proposal include subsidizing consumers to buy “dirty” carbon polluting energy?  How does this encourage consumers to start looking for alternate “cleaner” energy sources?  Or, how does this encourage alternate “cleaner” energy sources to enter the market?

And, why no carbon tax on petrol?

If the government is serious about attacking the carbon pollution problem, why would they exclude one of the biggest contributors – the petrol burning automobile?

It comes across as disingenuous to me.  It comes across as if the government isn’t really serious about reducing carbon pollution.  But, they’re dead serious about getting their hands on a boatload of tax money.  The carbon tax will be a massive boon to the government coffers!

So, that’s what’s bothering me about the carbon tax proposal.  It doesn’t seem serious?  It comes across as fancy way for the government to justify a tax grab.

But, I hope I’m wrong.  I hope it works.  I hope the government is serious and the proposal is just a way to get the whole concept off the ground.

I know … I know … you’ve got to start somewhere.  And, you can’t please everyone.

But, people don’t like to get fooled.  I know I don’t.  And, I don’t want the government telling me one thing but they really mean another.  I don’t want them giving me a proposal that doesn’t add up; doesn’t add up when compared to the stated goals.

So, I would like to see a proposal that adds up better.  I’d like to see one where the actions align more with the stated goals – align more with the stated reasons for the tax.

Let’s hear your views.  What’s bothering you about the carbon tax?

Previous Post

Carbon tax: Get the white elephant out of room!

Next Post

US Property Market … how’s it going?