Thoughts?
http://www.canada.com/topics/news/story ... 225746114d
Harper calls it a crazy plan
Debate It: Dion; Caps work better than a tax, Tories, NDP agree
Published: Friday, June 20, 2008
OTTAWA - The Conservative government and the New Democratic Party assailed Liberal leader Stephane Dion's proposed national carbon tax yesterday as an irresponsible plan that would do nothing to reduce carbon emissions but do a lot to raise the cost of living.
The Liberals, who estimated the direct tax cost at the consumer level at an average $250 per household, proposed sweeping income, corporate and business tax cuts to offset higher prices of heating oil, natural gas, coal-fired electricity, diesel, aviation and other fossil fuels.
The proposed tax, escalating over four years from $10 to $40 per tonne of carbon emissions, would be collected at the wholesale level, passed on to consumers and generate revenues --mostly from heavy industry and power plants -- of about $15-billion by the fourth year.
No carbon tax would be applied at gas pumps, on grounds the price has already leaped 50% since January, 2006. But a carbon tax would in that period boost the price of all other fossil fuels.
With chanting young people, glossy pamphlets, T-shirts and music, the Liberal launch was orchestrated to present the "Green Shift" plan as Mr. Dion's signature policy platform.
Stephen Harper led the negative reaction yesterday. "They're so bankrupt intellectually that the only policy idea they can come up with is to impose a new tax on energy prices at a time when energy prices are a national and global problem. That is their only idea?" said the Prime Minister during an appearance in Huntsville.
"Mr. Dion's policies are crazy. This is crazy economics. It's crazy environmental policy."
Deputy NDP leader Thomas Mulcair called the plan "a train wreck of programs and numbers" that would require a new bureaucracy to administer, would not be revenue neutral as promised and is not an effective way to reduce carbon emissions.
Both the Conservatives and the NDP advocate setting carbon emissions caps for big industry instead of imposing a new tax, while the Liberals say it's possible to do both, with the tax coming first because it can be done faster. Both the NDP and Conservatives also noted that the 44-page Liberal plan did not contain any estimate of a reduction of greenhouse gas emissions -- the whole point of a carbon tax.
At a news conference, Mr. Dion said the Liberal goal is to decrease emissions in Canada by 20% by 2020 from 1990 levels.
"It's more difficult to tell you what we'll have over four years," Mr. Dion said. "The experts don't agree upon that. Some said the carbon tax will decrease emissions a lot. Others said it will take more time to have more results."
Preceded by weeks of Conservative accusations that they were planning nothing more than a tax grab, the Liberal plan was heavy on details of proposed income tax cuts and credits for families with children, low-income workers, rural and Northern residents.
Mr. Dion appealed for a reasoned debate. "It is never too late for Mr. Harper to change his tune and engage in this debate positively as a Prime Minister should," he said in a speech to MPs and Parliament Hill staff.
Mr. Harper was uncharacteristically emotional as his voice rose to condemn the Liberal plan.
"When he says there'll be a carbon tax and it won't affect gasoline prices and it won't affect energy prices, this is nonsense. Of course it will.
"Mr. Dion went around the country for years claiming he would never impose a carbon tax. He couldn't be believed then and he cannot be believed now."
