Wednesday, September 10, 2008

Shaving diesel taxes: Stephen Harper joins a retail bandwagon

Free gas is being used to sell stuff
As I've mentioned before, gasoline subsidies are now being used by retailers to sell all sorts of things: not only big gas-guzzling vehicles and hotel and resort stays (you have to drive to get to your vacation spot), but even prescription drugs and financial services. All of this amounts to a negative carbon tax. These promotions are encouraging the production and consumption of fossil fuels, not to mention consumption in general - exactly the opposite of what we should be doing to prepare for the future.

Even by some churches?!
It is also amusing to see that in the U.S., even some (non-mainstream) churches have been giving away free gas to boost attendance and attract new members. Needless to say, that has attracted criticism from church groups.


Stephen Harper too
Well I guess Stephen Harper has joined this retailing bandwagon in order to sell his election platform, such as it is. Yesterday he announced an election promise to cut the federal excise tax on diesel by 2 cents per litre over the next four years. This amounts to a roughly $8/tonne negative carbon tax on diesel.

More greenhouse gases
This would be an incentive to consume and produce fossil fuels and greenhouse gases. This would be an incentive to put off the transformation that Canada must undergo to prosper in the 21st century.

And who will have to pay for it?
The cost of these cuts to the federal treasury is estimated to be $600 million annually. How are we going pay for that? Will there be stealth income tax increases like the one from 15% to 15.5% on the lowest tax bracket that accompanied the first GST decrease in 2006? Or perhaps we should ask what federal government programs will be cut? The recent cuts to arts funding programs that caused such an outcry were to save $46 million annually. How many more such cuts would the next Harper government make?

Don't make future generations pay for our energy subsidies
Or, would a Harper government borrow the difference and let future generations pay for it - future generations that will be struggling with the consequences of our delays in transforming Canada's energy economy?

1 comment:

Frankly Canadian said...

I wish people would understand the perplexities of looking beyond the next election, they actually give tomorrow at least a consideration, unlike our Prime Minister Mr. Harper. If you look at several of his policies they seem rather shot sighted for example, the environment, the whole g.s.t. reductions, the child care programs (or lack of), the economic portfolio, the foreign affairs portfolio, the Vancouver Insight program, the get tough on criminals with stiffer jail times rather than social programs to assist the troubled individuals, the list goes on and on. Canadians need to be more like the high school students who look for the real issues facing tomorrow, rather than how many bucks can this guy save us next February on our taxes, or will their be a two cent reduction on fuel? Ya everthing about him and how he operates is in sales and advertising 101.