Friday, May 09, 2008

Carbon Tax Poll

There seems to be a lot of debate surrounding the idea of a carbon tax. I thought it might be interesting to put up a poll to get some sense of where the online community stands:


Ivan said...

Highlights of the Mintz-Olewiler Proposal (Potential basis of the Liberal Carbon tax shift):

-The carbon tax will not be a new tax. Instead, the existing federal excise tax on vehicle fuels of 10 cents a litre for gasoline and four cents for diesel will be broadened to encompass all fuels according to their environmental damage such as carbon and air pollutants

-Leaving the existing excise tax rate on gas unchanged, broadening the excise tax to other fuels would be equivalent to a tax on the carbon in fuels of approximately $42 per tonne CO2

-This tax would extend to oil, natural gas, coal and other fuels used to generate electricity

-Every megawatt hour of electricity generated from coal would have a tax of $42.84 applied to it. This translates to an additional 4.23 cents per kw/h of electricity. Every megawatt hour of electricity generated from Natural Gas would have a tax of $21.59 added to it. This would be an additional 2.2 cents per kw/h of electricity. Only New Brunswick has significant oil fired generation, and the tax would add $31.84 per MW hour or 3.18 cents per kw/h (Source: EPA and NRCAN, Internal)

-There would be no penalty to electricity generated from renewable sources, hydro or nuclear

-An average family in Ontario that uses 1000 kw/h a month (the average) would pay, on average, an additional $113.4 for electricity, yearly

-A family using 2300 cubic meters of Natural Gas (the provincial average) would pay an additional $184.8

-Electricity costs will be lower in jurisdictions such as Manitoba, Quebec and BC but potentially 2-3x higher in the maritime and prairie provinces due to their greater reliance on coal fired generation.

-It would increase the cost of an airplane ticket from between $4 for a regional flight to $30 for a long haul flight (Source: Internal)

-Broadening the excise tax to all fuels would raise $12-$15 billion in additional revenues over and above the existing excise tax

-This revenue could be used to cut personal income taxes by 8-10%, cut corporate income taxes, realign the capital cost allowance to reflect real fair value and provide tax credits for environmental technologies,

-Carbon taxes have been introduced in Denmark, Norway, Sweden, Germany, the UK, Finland and the Netherlands

Tomm said...


I didn't vote and won't. I obviously feel conflicted here.

However, I think it is a good strategy. In the longterm it makes obvious sense, and surprisingly will help differentiate the LPC from the NDP, which is interesting.

I'm glad that the LPC has begun defining itself as a government in waiting.


Oldschool said...

Of all my many acquaintances, only 2 believe the GW nonsense. Our Premier Gordo, reads a book and gives us a 3.5 cent a litre carbon tax. Now Citizen Dion wants to do the same. They are both nuts!!!
Just tax the perceived problem and it will go away.
The IPCC has decided to put GW off for 10 years, since the planet has cooled half a degree since 1998.
Adding any costs to transportation and heating in Canada will only eliminate more jobs and fuel inflation.
This will be a replay of the 70's when PET started the tax and spend binge!!!
All the GW predictions were wrong, Mt. Pinatubo, in 92, sent more CO2 into the atmosphere than man has made since the industrial revolution.
Citizen Dion will only help to move more businesses to China!!!

Calgary Junkie said...

How do you guys deal with the fact that Dion was against a carbon tax, during his run for Party leader ?

One of the reasons the "Not A Leader" tv ads worked, is because they used the Liberals' own words against them.

Expect a repeat here. TV ads with clips of Dion, criticizing the very thing he would now be advocating !

Steve V said...

"How do you guys deal with the fact that Dion was against a carbon tax, during his run for Party leader ?"

I have no problem with pragmatism. Besides, do you really want to rehash past statements, given Harper's laundry list of offensive quotes???

"Of all my many acquaintances, only 2 believe the GW nonsense."

Wow, that's a shocker oldtool.


Thanks :)

okhropir rumiani said...

Do you remember that the GST was a tax shift too?

It will be extremely hard to sell these shifty dealings, you know.

okhropir rumiani said...

What percentage was proposed for this carbon tax.

The price of fuel has increased quite a bit but it hasn't yet made a big dent in the behaviour of people where I live.

So it seems to me in order to have an effect it would have to be greater than the amount fuel generally fluctuates.

okhropir rumiani said...

Sorry, I didn't read Ivan.

Steve V said...

"Do you remember that the GST was a tax shift too?"

Are you referring to the Conservatives first cut of the GST, where they also raised personal income taxes .5%?

wilson said...

Mulroney tried to sell the GST as a tax shift, no more hidden taxes. Maybe you're too young to remember that.

At least we can see the GST.
A carbon tax will be hidden in everything we buy. And I mean everything.

So will the carbon tax be set at the amount needed to meet Kyoto targets?
Because that will be a HUGE tax.

Steve V said...


I'm just curious, why do you LIVE on progressive blogs? Are the BT's that boring, predictable and uninteresting? It amazes me actually.

BTW, I remember Mulroney well :) The GST is a horrible analogy.

okhropir rumiani said...

No, I'm not. I'm referring to when Mulroney implemented the GST to replace the manufacturer's sales tax.

You can correct me if I'm wrong but I don't believe that the %0.5 income tax even ever happened.

Steve V said...

"You can correct me if I'm wrong but I don't believe that the %0.5 income tax even ever happened."

Okay, you're wrong.

okhropri rumiani said...

Thank you, I remember now.

The lowest taxed earners enjoyed a 0.5% income tax cut for about a whole 5 months. Then it was repealed.

Calgary Junkie said...

Steve V: "Besides, do you really want to rehash past statements, given Harper's laundry list of offensive quotes???"

Go ahead, use Harper's old quotes in a tv ad. It's all fair game, and more power to you, if you can make an effective compilation of what he's said.

Anyway, Terence Corcoran has more issues for Dion to deal with on a carbon tax here

Steve V said...


Yes, Liberals should worry what the National Post thinks. I'd rather take advice from wilson.

Möbius said...

The carbon tax does pique my interest. I'm a low carbon user by nature, small house, small car.

However, I'd like to see the income tax cut first, thank you, then carbon taxes later. Not that I don't trust the LPC.