Now that we will have a government representing the majority Canadians and working for all Canadians, the question is, will Dion keep his promise of a carbon tax?
Jack Layton and the NDP as well as the oil industry Conservatives were against this tax, but for different reasons. Harper was doing the bidding of the oil industry and Albertans, while the NDP had worries about the economic impact on low income Canadians who don’t pay enough tax to see any money back from a reduced income tax.
What many in the NDP do not realize is that the NDP policies regarding improvements to our social safety network and a “living wage” cancel out these concerns. The rationale is that while a tax on carbon emissions increases prices for energy and any transported product, the dramatic savings in income tax, regional adjustments for high energy use areas, and an increase in the minimum wage, as well as all forms of social assistance will counteract the price increases. Then the carbon tax will function as planned, rewarding people in each region of the country with lower than average greenhouse gas emissions with more money, while making people who pollute more than average pay a bit more every year.
UPDATE: I found this piece on a carbon tax that’s short and worth a read. Turns out, a tax on carbon doesn’t ruin the economy.
Will the NDP continue their assault on a tax on carbon?