Quote:
Originally Posted by ikaris
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?
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First off, a 1% tax cut will not offset the increases that I have to pay. The tax cut will definately cover my personal increases in costs for heating my house and such, but it's not going to cover an increase in EVERYTHING else (like food, clothing, furniture, etc.)
Second, having a tax would encourage polluters to decrease their emissions, if they were actually having to pay the tax. As you illuded to in your post, it sounds as if you realize that these taxes on the polluters will be passed onto consumers...so why would the company care? They aren't paying the tax, simply passing it on to someone else to pay it for them.
I completely agree that there needs to be incentives for companies to "go green." However, punishment does not work. Positive reinforcement does. It's simply psychology. If companies were to recieve more money for cutting emissions, they would all be more willing to work for it as it's bonus money with no strings attached.
Finally, no if the price of diesel only went up 7 cents per litre over four years that wouldn't be terrible at all. In fact, its most likely going to happen whether the Green Shift is implemented or not. But what you are forgetting is that the price of diesel is going to increase (due to iflation, increased oil or whatever) adn the 7 cent tax is ADDITIONAL to those increases. Business budget for increases in transportation costs, but they would have to budget for a 7cent increase, PLUS the regular fluctuatin of diesel, therefore, passing on that 7cents to consumers.