Quote:
Originally Posted by FFR
Becuase not only are oil sands productions going to be taxed by the Green Shift. Natural Gas, which is used to heat homes, business, etc will be taxed. Those increased costs will be passed to consumers because every competitor will be taxed, so every competitor will raise prices. Diesel, which is used by nearly every transport company, will be taxed. Those increases will be passed down the line, eventually, to consumers, again because everyone is taxed, so everyone will raise their prices to compensate.
There are two examples...would you like more? It's not necessarily all about the oil sands when it comes to consumer impact. It's my belief, that the impact the oil sands feels will simply kill the economy, because you're right, they can't simply up the price of oil to overcome the additional costs they are facing.
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Ok, I got you but isn't that where the tax cuts come in? The potential increases that we may have to pay for the services impacted could be compensated by the reduced income tax we would have to pay. As well, would this not encourage polluting industries to facilitate greener mechanisms reducing pollution?
Currently, there is no incentive for any of the industries to move to a more efficient, green model of production. To me, this tax provides a stick, rather than a carrot of achieving this. The alternative is to provide tax breaks to companies that go green (which I believe the green shift does as well), but I think we've seen that this takes a lot longer to achieve the results that many think are necessary.
With regards to diesel, if the price goes up 7 cents in 4 years, is that a serious problem? And if gas goes up 2 cents a litre, again will that kill our economy?