Edmonton Journal (via Canada.com) posts a proposal that would allow the government to hit non-efficient use of fuel without necessarily imposing a carbon tax. I happen to agree with the author that setting a low limit on the price of fuel and offsetting the artificial imbalance by cutting other taxes would definitely avoid the stalls in efficiency developments we saw during earlier fuel price hikes.
It still remains, however, a government meddling. Minimum prices are first and foremost against consumers. Good intentions regarding the environment do not justify imposing a system of values upon the defenceless citizen who has to fill up at the pump. Coming from Italy where certain goods have a government-imposed minimum price I fume at such aberrations being exported elsewhere. Expensive fuel encourages user efficiency, while cheap fuel should encourage efficient extraction. With environmental legislation as it is, cutting corners by polluting more to produce gas cheaper isn't an option anymore.
Where does this leave us? A carbon tax is a con which will further endanger the economy. A minimum fuel price, however, will have subtler effects causing the same damage. If the price of fuel never comes down this piece of legislation would be useless (a Liberal specialty). Set the limit too high and the tax cuts in other areas to balance the grab would divert all government money towards compensating Canadians being defrauded at the pump. If the Liberals dare impose such a threshold their pet boondoggles would be starved of tax dollars.
Where does this leave Stephane Dion? In a bind. Persisting in carbon tax advocacy is political suicide, while pulling the plug on the policy will further portray him as a feeble leader. Switching to a minimum price, however, will only make matters worse, for high minimum prices will starve the government of money (or the consumers) and low minimums will be so useless hiding the policy failure would be a challenging task.
2 comments:
This carbon tax scheme is just another panic reaction to the rantings of the environuts. Like the biofuel fiasco, this is a poorly thought-out, unworkable, feel-good daydream.
Rising prices for carbon based fuels is already having an impact on the choices people are making. The biggest difference between rising prices and increased txes, however, is that people will cut back on discretionary items like non-essential driving and houses lit up like Christmas trees. A carbon tax will impact the essential items like home heating and the cost of growing and transporting food.
No matter how the Liberals sugar coat it, this is a concept that just won't fly.
they need to add some more sugar to it
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