Thursday, June 19, 2008

Having Dion's Cake and Eating it Too

If the purpose of a tax is to be a disincentive to certain types of behaviour, why would it be "revenue neutral".

Essentially Dion has said we (liberals)want to encourage income, investments, innovation but discourage carbon use.

But on the other hand he says, don't worry though, our encouragement and our discouragement will be equal. What you pay for in new carbon taxes, you will save in income.

Now some may say, well if you use less carbon, you will get to save more of your income. But carbon use is integral to every part of our economy (hence the Tories "tax on everything" tag). We cannot get product to market without using carbon. We cannot get to most markets without using carbon.

Revnue neutral it may be (17 Billion in, 11 Billion out - not sure how that is neutral) but a revenue neutral tax will never alter behaviour.


I can see right through this plan. It will be neutral for the first while just to get people used to the idea and then they will slowly pull back the income tax cuts etc. The excuse will probably be the "unexpected" downturn in the economy makes it impossible to keep the cuts. That's how liberals always work.
Post a Comment

Subscribe to Post Comments [Atom]

<< Home

This page is powered by Blogger. Isn't yours?

Subscribe to Posts [Atom]