Stephane Dion’s carbon tax proposals may well be the most sensible policy yet proposed on the issue of the environment– but are voters sophisticated enough to accept that there is a need for structural change in our economy to reflect the new realities of global energy use? Are they smart enough to not think they can continue to live in a world of cheap oil when China and India are both increasing demand at astounding rates?
One anchor asked the reporter in the field, “and how are we going to get those gasoline prices to go down again”. Amazing. Absolutely amazing. Even people who should know better can be heard muttering about bad timing– gas prices are already up to record levels and here he wants to raises taxes on it.
What is happening is this. Gas prices are going up because expected consumption exceeds supply. It sounds like most people want to increase consumption (by lowering prices), which, of course, will reduce supply even faster, which, of course, will inevitably result in even higher prices.
Dion’s proposals actually shift the tax burden so that consumers are rewarded for reducing consumption and for using alternative fuels. Even better– it rewards clean energies and punishes energy consumption that contributes to climate change. You’ll notice that this took more than one “quip” to explain. That might– sigh– means it’s doomed as a political move.
“No new taxes” sounds much more appealing on your doorstep or in a 30-second radio ad.