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Originally Posted by FFR
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.)
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Is it really just a 1% tax cut? From my understanding this whole idea is "revenue neutral" which I take to mean whatever is generated will be provided back in tax cuts. More tax revenue = decreased income tax for consumers.
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Originally Posted by FFR
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.
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This is the whole beauty of our capitalistic society. While many of the products and services may have inelastic demand currently, eventually they will become elastic. When they do, as prices go up, demand will decrease and the producers will have to adapt.
How? By reducing emissions to reduce their tax impact. The companies that don't do it will simply see their profits disappear as compared to the companies that do clean up their act.
This is obviously not going to be an immediate result, and it will take time to get there.
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Originally Posted by FFR
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.
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It's just that we've tried that, and we can see that it's not working.
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Originally Posted by FFR
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.
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This is where I would suggest that the more efficient companies using greener models will prevail and the prices that may have gone up, will eventually settle back down as the companies that refuse to change their ways go bankrupt.
This whole idea of the "green shift" is to help change the way we all consume. I don't think it's perfect, but it's certainly an idea by the Liberals and Greens that challenge the status quo.
I've now seen what the NDP wants to do (blech!). What about the Conservatives? They refuse to release their platform, which (as I mentioned before) scares the crap out of me. Is it because they don't have a plan?