”A carbon tax is almost always implemented as a direct tax on fossil fuels. Given the current price of these fuels, however, it is difficult to argue that a further price signal will dampen consumption or shift demand.”
That “current price” in 2006, looks like utopia from here. I’ve said this before, but I hope this “tinkering” we are doing now encompasses some sort of threshold mechanism, wherein any tax only kicks in if prices drop to a certain level. We are in the midst of seismic consumption changes at the moment, the cost of fuel is already having the desired effect.
If Dion was right then, then it’s hard for any plan to argue differently now, given the present circumstance. Dion can change his opinion, but on the above score, those words have the potential to haunt him, if this plan doesn’t factor in the WOW of the NOW. If the goal is too cut emissions, change habits, nobody could argue that the market isn’t doing exactly that at the moment. The Liberal plan must acknowledge that simple, objective fact.