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Old 12-20-2016, 02:35 PM   #5650
Red
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Quote:
Originally Posted by iggy_oi View Post
Yes, and it should be expected, the same way they explain the fuel cost charges when gas prices increase. The media is IMO trying to make a bigger issue out of this than it is, these things happen whenever prices fluctuate, but they don't report it every time. After rereading my post, I realize the way I worded it came off as an issue with the company rather than how this is being reported.


I don't know how you reached this conclusion. At what point have I argued that a tax will not cost anyone real dollars? I maintain that I don't believe the overall cost increases will be as catastrophic as many seem to believe. Using the trucking industry as an example, the cost increases get divided up by the consumer products being transported, which can significantly change the impact. Fuel for a load costs X more for each load, each load contains Y amount of consumer items, so the cost passed on to consumers for each item will essentially be X divided by Y.

Groceries seems to be the most common example of a commodity that will go up in price. Let's say the value of X for a full load of groceries, after all stops along the way for the individual loads from different vendors then to the distribution centre and finally to the store, is $1000(which seems like an extremely high number). If the value of Y for that full load of groceries is 50k individual items to be sold(a very conservatively low number for a full load of groceries) the added cost to each item to make up for the carbon tax related extra costs in transportation would be about 2 cents per item.

If you buy 100 items today at the grocery store, what do you think the bill would come to? Let's say the average item costs $2(which is also a conservatively low figure, even if you shop at superstore) your total bill would be $200, add 2 cents per item and you are looking at a 1% increase in your price being passed on to consumers through transportation cost increases, and realistically that number is likely much much lower than that. This obviously varies from industry to industry, but I've used this example because it appears to be the industry the majority of people are concerned about being impacted by costs being passed on to consumers.

I agree whole heartedly with your statement on transparency vs blissful ignorance, which is why I wish people would try to actually look at numbers and facts rather than just tell themselves this will cripple our economy or that if you are not adamantly opposed to it you are somehow being a disservice to yourself, your family and your country. ( That last part might sound a little extreme, but it was said so I can't exactly be accused of over exaggerating some people's reactions)
We also need to remember that we were in a $1 - 1.30 per L of gas for years not so long ago. We also need to remember that our natural gas cost 3 to 4 times to what it costs now a few years ago as well. So really, the utilities and gasoline costs are not any higher even with the CT applied. In fact, they are much cheaper than our 10 year average.

We all hate new taxes, but let's look at the whole picture here, there should be no hikes in food prices etc. It's not like food got cheaper when heating and transportation costs plunged. Not to mention the borrowing costs are much cheaper too. I get it, businesses need to make money, but they are not going to be any worse off than in many times in the last decade or two. They should not be crying.
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