Shifting or Shafted ??

This isn't a journal suggesting action, or pumping a party. It's a rumination of the centrepiece of the Liberal platform - the Green Shift.

Dion says it it can be summarized in 6 words - “cut income taxes, shift to pollution.”.

It is hard to believe that a man is telling the truth when you know that you would lie if you were in his place.

H. L. Mencken

If I were in Dion's shoes I wouldn't be so naive as to tell the truth. His 6 word summary of Green Shift is the truth. The Green Party's plan is similar to Dion's. A carbon tax is in place in Denmark and in B.C. Opinions vary on how effectivly the Denmark and other European schemes work. The Green Shift is not perfect but it's more honest than the Con plan ( details and cost projections for which have yet to be released - surprised ?? )

An article on European carbon taxes in the NY Times and a critique of the article from "www.carbontax.org", which seems like a pretty good resource on the subject.

Here's another quote by Mencken

"Nobody ever went broke underestimating the intelligence of the American public."

I always liked and was frightened by that one.

Here's another

"There is always a well-known solution to every human problem--neat, plausible, and wrong."

That solution, the Con solution, would be to reduce the excise tax on diesel fuel by 2 cents a litre. Does anyone think that the oil companies will pass that reduction on to consumers ?? The price at the pumps recently jumped by 12 cents in my neighbourhood ( speculation on damage to refineries by Hurricane Ike ). A 2 cent reduction, even if we did see it, is swallowed up by typical market fluctuations. Reducing the cost of a product will lead to increased sales of said product. Mother Earth wants to see less fossil fuels burned. All Harper is doing is saying what needs to be said to make the sale ( get a majority ). He doesn't have your, or the planets, best interests at heart.

The Con plan, by their own admission, will raise the cost of electricity and other fuels.

Strong environmental regulation to reduce greenhouse gases and air pollutants will inevitably come at a cost – and those costs will be borne, at least in part, by individual Canadians and their families.

The Libs say they will make carbon taxes revenue neutral. A better deal, IMO, than what Cons are offering.

Lets see if you can guess who is behind these snippets:

The Liberal Green Shift plan will also be Dion’s greatest test of leadership since winning the Liberal Leadership Convention. Even if the plan is judged sound and the need exists, can he effectively persuade voters and can he withstand a well-financed and likely fierce Conservative counter-attack?

NikontheNumbers

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The Liberal carbon tax will a) plunge the country into recession, b) undermine national unity, c) make everything more expensive, or d) probably not be any more economically damaging than the Tory or NDP green plan.
If you answered either a), b) or c), then you've probably been listening to Conservative Party Leader Stephen Harper recently.

...

But what evidence is there to support these apocalyptic predictions?
In Harper's case, we have to take him at his word as a politician and economist. There seems to be no explanation of where Harper's visceral hatred of carbon taxes comes from, other than sheer political partisanship.

...

For Harper to claim that the carbon tax will destroy the economy, or break up the country, for crying out loud, is taking political rhetoric to a new low, even one noted for defecating puffins.
It smacks of demagoguery and, worse yet, desperation.


Bruce Johnstone
in The Leader-Post

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The best part of the Liberal Green Shift is that Dion has called for an adult debate on a real problem, planet threatening greenhouse gas emissions. Canada needs to have that debate. Personal attacks on other party leaders weaken democracy. Shouting falsehoods about a tax grab as the government has done, probably rules out the Conservatives from participating seriously in national discussions, but such debates can go ahead, with or without Stephen Harper.

Duncan Cameron at Rabble. He doesn't like the Green Shift, but I sense he thinks it's a step in the right direction. An interesting read.

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The willingness to tax pollution and transfer the revenues to individuals and businesses ready to invest in “green” habits and technologies is leadership. Simplifying the message to “tax or no tax?” belittles substantive arguments about what the tax aims to achieve.

...

Yet, our own prime minister plumbs the depths of intellectual dishonesty as he bellicosely derides the ‘Green Shift’ as the ‘Green Shaft.’ Let’s forget for a minute that our PM is criticizing policy with sodomy references.

Martlet - The University of Victoria's Independent Newspaper

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The environmental plan Dion presented is also woefully incomplete. While it’s true that when greenhouse gases are reduced, water and air cleanliness will also improve, he didn’t lay out any specific plans to directly target these problems. It also would have been a welcome announcement to hear about ideas to further regulate fuel efficiency standards for automakers so that they were closer to European standards than our hummer-driving neighbours to the south. While the carbon tax will be beneficial if it goes as planned, environmentalism goes far beyond creating tax incentives to release less carbon dioxide.

...

While there are some problems with the carbon tax plan, it has not gone untested. Similar work has been done in many other countries—such as Denmark, Sweden, and Finland—with fairly positive results. Dion’s plan appears, at the very least, to be far superior to Prime Minister Harper’s half-hearted commitments to cut greenhouse gases in half by 2050.

...

While Dion’s environmental policy has flaws, it does deserve consideration from those who are concerned about climate change. As in the Liberals’ plan, flaws will likely become apparent as each party presents their environmental pitch this fall, leaving us to choose the least of many evils.

This is from a post titled "Liberal Green Shift is woefully inadequate and economically flawed" on 'The Gateway' - the official newspaper of the university of alberta. Such is the state of student journalism that the summation contradicts the title.

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So, the companies who currently don’t make any profit but pump all kinds of chemicals into our atmosphere and drinking water should be taxed heavily in order to pay for the eventual cleanup that has to be done, instead of giving them some kind of exemption because they don’t make any profits… That would also give an incentive to companies who pollute to clean themselves up IF they choose to remain here. If they don’t stay in Canada, then good riddance, we like our rivers and forests to retain their “earth tone” colours… Not all fuschia.

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Climate change is not like most other environmental problems (e.g., ozone depletion, acid rain) where you have a limited number of sources. With climate change, everyone’s an emitter. The solution is tantalizingly simple: reduce the use of fossil fuels.
...
This plan would be a move in the right direction, the only problem is that it doesn’t go far enough

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I’m still digesting the tax plan, but at this point (despite my reluctance to support the Liberals [not that I'm a fan of Harper's govt' either]) I would suggest it’s a good plan.

The above are in the comments to an article - snippet below

As the “green shift” proposes to refund the carbon tax in the form of income tax cuts, the policy amounts to increasing the tax on consumption while offering an equivalent cut on income. Canadians who save a significant portion of their income are likely to benefit from this policy as money sitting in a bank or brokerage account isn’t emitting any greenhouse gases. Most Canadian families in the middle income brackets that spend most of their income are likely to be more or less in the same financial situation as before. Big spenders are likely to be hit the hardest.

The article is on - surprise - a blog called "Canadian Capitalist".

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What will really “screw” Canadians, as Harper is fond of putting it, is making them afraid of bold proposals. Maybe there’s a better way for the feds, to fight global warming (it’s clearly not through Conservative “intensity targets”), but a Green Shift is a bold move and a good first step.

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Addendum - I had this at the start of the journal but it seemed to just get in the way there. But seeing as I wrote it I'm kinda obliged to post it.

There has been the assertion that this site is non-partisan - that the site does not support any particular political party. That is true and it's good by me. I lean to a particular party. I have, on occasion, voted strategically in the past and I will have to do it again this time. I would be ok with the Liberals spending ten years in the political wilderness as a consequence of channeling government funds through ad companies to their own coffers.

However that leaves us with the very real possibility of the Cons getting a majority. Not acceptable.

So we have to elect Anyone But Conservatives. Vote early, vote often, vote for the candidate that has the best chance of denying a Con a seat. I know - that runs against good sense and logic, in some cases. I means that you would be voting for someone that is not your ideal pick. Strategic voting is a bitter pill to swallow.

References:

Liberal Party Green Shift policy - 'pdf' in English

The Green Party Green Tax Shift policy

P.S.

I had started this journal a week ago and upon reflection it's a bit rambley. My apologies and thanks for reading.

Its hard to decipher...

Dions grand plan. But me thinks that is his fault too.

Thats a lot of info and opinions there willy. 

I read this in June.....This would be one of the most exciting parts if true.

Child poverty is still a disgusting, ongoing travesty in this country.

 

If you believe you can tell me what to think, I believe I can tell you where to go......

If implemented...

... it would be a great use of money.

The Danish model ( the only one that actually worked in reducing carbon emissions ) didn't use the carbon tax revenue as a cash cow.

Denmark avoids the temptation to maximize the tax revenue by giving the proceeds back to industry, earmarking much of it to subsidize environmental innovation.

From the NY Times link.

Dion's Green Shift would be used to pay for lots of "social engineering" initiatives.

The revenue is predominately targeted to lower income Canadians. Admirable, but it opens one up to criticism that the carbon tax is not purely about the environment. Another critism is that if it works it will bring in less revenue - less fossil fuel used = less money coming in. I think that consumption of fossil fuels will continue to grow, both in Canada and globally. The best that we can hope for is to slow the rate of growth.

Criticism of the Green Shift policy runs from it imposing no caps on emissions to it making everything cost more to it being a cash grab from oil producing provinces.

Yup, it's going to make everything cost more. That is an effect of the tax. The theory about making carbon producing oil cost more is that you, and industry, will use that commodity sparingly. Therefore, less carbon is emitted.

From another Leader-Post article about the reaction of the trucking industry:

...Prebble, former NDP MLA and longtime environmental activist said.

Money could also be provided to enable the trucking industry to operate in a more environmentally friendly manner, Prebble said. For example, he said money could be provided to assist in putting speed-limiting devices on trucks.

Money could also be used to encourage installation of auxiliary power sources in trucks that would save energy by eliminating the need to run a diesel engine when a truck is idling, Prebble said.

Prebble's ideas could be done by government money and encouragement, however the rising cost of diesel fuel should have already caused the trucking industry to adopt these measures. Payback on the items is likely already short enough to make them a good investment.

A problem with the carbon tax is that it is small in comparison to the already high price of fossil fuel. A price high enough to have made conservation and innovation the right thing to do. People and industry should realize that the price is not going down, no matter what. Deal with it, cope with it, use less. Dion is just driving the point home. We have to make some bold moves to address a multi-faceted problem.

Regarding caps on emissions. They are coming, IMO. There will be some form of government imposed 'cap & trade' regime coming down the pike. The European countries have 'cap & trade' and a carbon tax. The problem has to be attacked from a few different directions.

Regarding the revenue grab from Alberta & Saskatchewan ( that's the two you hear about even though Newfoundland is also a producer ). I don't buy that it is a revenue grab.
Dion's carbon tax is applied at the wholesale level to domestic consumption. Producers won't lose export sales because that product doesn't get taxed. The nub of the argument is that producers will be selling less oil and therefore have a slowdown of production and associated prosperity. The bulk of western oil, I believe, is exported, so a higher tax on domestic consumption wouldn't be a major deal. And lets be realistic, the States will buy every drop we produce. So no slowdown, no lost prosperity. The idea that it is a revenue transfer from the West to the East is also bogus. The carbon tax is ultimately paid by the consumer, the bulk of which are down East, so they are paying the tax and the money is being spent on them ( at least the less well off of them ).

Thanks for the link, pale. It's a good one.

I can't say I know enough about the subject

(and thanks for all those links Willy). One thing for sure, Harper is not offering a single environmentally significant policy. NOT. ONE. SINGLE. THING. That's all I know. To tell you the truth, maybe the Green Shift is not easily understood but I do get some of the broad strokes. At the same time, I have no idea what the NDP are proposing other that increasing caps.

I'm in the same boat

Being on the flatlands I hear a lot of people saying that Dion is wrong with his Green Shift idea. I looked into it to counter some of the things I'm hearing in the coffee room. I still don't know enough about the policy. And I do blame the Liberals for not selling the idea effectively.

You are sure right about Harper's lack of environmental polices. He doesn't have ideas that will make people vote for him, he just wants to get elected to implement his ideas. I've taken to calling him "the sweater guy". As is 'he's a fraud'.

I can't say I have looked at the NDP's proposals either. Looking at them is probably the fair thing to do.

I understand maybe a bit

It takes an economist to fully understand what all this is about. I'm looking through Wikipedia right now, and also cogitating at the same time. I'm really just guessing at the broad here.

Carbon taxing is something we'll see in our taxes. It'll be the same amount that incomes taxes are reduced. It's a blanket tax, meaning everyone takes a hit on payday. As I'm writing this, I'm starting to feel a bit incredulous. And I'm going to have to use a corny example to explain what my thinking is here. Stephan Dion is baking a pie. It's called income taxes. But one slice is called carbon tax. But it's all the same pie. Technically, nothing actually changes (but people really do complain about taxes a lot). Technically, that slice of pie is meant to invest strictly in green technology.

Cap and trade is different. Only heavy industry is burdened with cap and trade. And only after it produces a certain amount (which is the 'cap'). After it goes over this particular amount:

- 'Pollution' given a set price. The more a company produces greenhouse gases, the more 'pollution' it is purchasing.

- 'Clean' is also given a set price. Our company can buy clean to cancel out pollution. Clean is not as expensive as pollution, which should make it attractive.

These commodities are technically regulated by an independent organization. They send in inspectors to factories, and they audit these companies to make sure they aren't cheating.

Idealy, heavy polluters are punished, and, hopefully, companies which invent new methods of doing their job that don't pollute will leave the rest in the dust. Although there are industries that will probably never find clean methods, and will have serious trouble adapting.

You're making sense ....

... to me. It's takes a little thinking to figure out how it is proposed to work and then a little more to speculate how people and companies will circumvent and abuse the process.

I like your pie analogy ( can't say I have ever heard of a corn(y) pie, though ). I have long said that the only place you can get any money ( taxes ) is from the regular 'Joe & Jane'. Any tax you place on a company ( other than income tax ) is just passed on to the end consumer. So whether you tax my income or my general consumption ( GST ) or my carbon use doesn't change the fact that I am paying for my government and government programs. So put the tax on the thing that is going to hurt the average person the least and/or promote the desired change in society.

The best I can hope for is that my government efficiently take only as much money as it needs and then spends it wisely and effectively.

... The more a company produces greenhouse gases, the more 'pollution' it is purchasing.

I would change only a few words in this.

... The more a company produces greenhouse gases, the more 'pollution' it is being fined for.

You have some valid insight there, Tory. Thanks for commenting.

In BC

Premier Drunky McDriver's "green tax" is just a sophisticated shell game, and as usual, regular people like us get stuck with the bill while large polluters get exemptions. 

I call B.C.’s new fiscal framework “CT2”: carbon tax and cap and trade. These new-sounding policies are not so new, and, based on our experience, British Columbians should be very concerned.

snip

“Cap and trade” is a fancy name for a quota-based supply-management system for carbon-intensive commodities such as fossil-based energy, cement, aluminum, food products, pulp, paper and building products. It works the same way as B.C.’s existing milk, cheese or fishing quota systems, or city taxi-licensing systems. As in all such markets, once the quota supply cap is set, it’s a zero-sum game. If the premier wishes to allocate surplus quota to Company A to incent the company to invest in B.C., he has to reduce the quota available to the other companies covered by the quota cap. If he wants to open up the north for more energy production, he has to force other B.C. manufacturers either to shut down or to buy California quota in order to retain their right to operate plants in B.C.

snip

It is obvious to me why large corporations with dominant global market shares would favour CT2 over other policies the premier might propose to mitigate greenhouse gas emissions. Under CT2, B.C.’s largest carbon-emissions producers are exempt from the carbon tax and will be well positioned to corner B.C.’s carbon-quota market. For small manufacturers, however, the carbon tax is simply an income tax they have to pay even in years when they lose money. These small-market players – who account for 80 per cent of B.C. jobs – do not get a carbon quota allocation and can’t afford to play that game anyway.

I don't trust any of these corporate-owned dolts to do the right thing, mainly because it would not be politically popular to actually cap emissions and call for tougher fuel efficiency standards, and make big polluters stop poisoning our air, water, and land.  

It's not just about emissions.  It's about dead zones in the waters, finite resources, and destructive projects that you can see from space, decimating the ecosystem (read: food chain).  If we don't clean up our act, dramatically and soon, our children are screwed - to borrow a favourite phrase of PMS.  


 McCain/Palin - Unstable/Unable

Hard to figure...

... what is the best workable plan. B.C's example doesn't sound good.

I don't think it's impossible to craft a plan without loopholes, but politicians allow certain interests to buy the loopholes they want. If I had an integrity stick I'd smack someone with it.

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