[Shawnski]

Originally Posted by Slava

Here is an interesting article about the business effects of the carbon tax plan. Interestingly highlights not only the negatives, but also some positives of the plan for business in Canada:

http://www.reportonbusiness.com/serv...umnsBlogs/home

More interesting aspects as to the "revenue neutral" aspect of this.

The plan does include government aid for purchases of more fuel-efficient machinery and for research and development of processes that will use less energy. Most businesses are already looking at this on their own in the face of rising energy costs. Under Mr. Dion's plan, the federal government will lend a hand.

So some how, in mystery land, income tax cuts will offset the increase from this carbon tax. BUT there is still money to administer this program AND provide government aid as per above.

But passing on higher costs is not as painless as it sounds. Just as when the GST was introduced in 1991 (by a Conservative government, one should point out), business will find itself sandwiched between the government and consumers.

Removal of the manufacturors sales tax had a huge impact to Ontario's economy. The GST was a revenue neutral version as well. Didn't turn out that way. No mention of that aspect here.