‘Green Shift’ is misguided

Commentary by Mac Olsen

Albertans should be very scared of Liberal Leader Stephane Dion and his so-called ‘The Green Shift” agenda. The Liberal leader made his sales pitch for “Green Shift” in Ottawa on June 19. He wants to put impose an energy tax on carbon fuels, which would be as much as $15 billion annually in four years. Dion insists “Green Shift” will be revenue neutral, claiming they will cut income taxes and increase family support payments. Here is how they see things playing out with “Green Shift”:
* Put the price of greenhouse gas emissions at $10 per tonne, rising to $40 per tonne by the fourth year.
* Cut the lowest income tax bracket ($37,885 or less) by 1.5 per cent to 13.5 per cent.
* Give a one per cent tax cut to the second and third lowest income brackets.
* Cut taxes by $15.5 billion, including $11 billion in personal income tax cuts.
* Create a new universal child tax benefit worth $350 per child annually in addition to existing child benefits.
* Add a $600 increase to the Guaranteed Income Supplement for seniors, and increase benefits for low-income Canadian families. The proposed carbon tax is supposed to be targeted at electricity and home heating fuel, but gasoline at the pump is excluded because it’s already taxed, says Dion. However, look right through “Green Shift” and see it for what it really is – a misguided attempt to buy votes and pander to environmental activists, and it will do nothing to reduce climate change. Sure, putting $15 billion back in the pockets of Canadians sounds impressive, doesn’t it? Maybe it even sounds good because it’s specifically targeted at the “Big Oil” companies, that they’re going to pay “their fair share” with a new energy tax. But where is the logic of taking with one hand (the carbon tax) and giving it with another (reduced taxes to Canadians)? Those stuck with paying higher heating and electricity bills will have something to say about that. Any additional tax reductions, credits or benefits they receive will just have to go back into their increased cost of living, so it’s really a zero-sum game that Dion is playing. Albertans should also a fear slowdown in the oil patch if this new carbon tax is imposed. Oil is such a big part of the provincial economy that it could mean the oil companies reduce their investments in production and exploration. There’s also the rippling effect layoffs in the oil patch could cause to families, other businesses and entire communities. This does not mean governments shouldn’t pursue initiatives to reduce the impact of climate change and global warming. Carbon capture technologies appear to be promising, and the oil companies should be encouraged and even required to use them. Consumers should reduce their carbon footprint by using energy-saving LED light bulbs, which use less as much as one-third less energy than incandescent bulbs. There are also energy saving measures such as sealing windows and doors with weather stripping. Hybrid vehicles are promising, as they reduce vehicle emissions substantially, but they are still very expensive. It also remains to be seen how expensive and practical the so-called “plug-in” hybrids will be when they hit the showroom floors in the next few years. So, be wary of Liberal Leader Stephane Dion’s “Green Shift” agenda. It may sound good, but if it looks like duck, acts like a duck and quacks like a duck, then it is duck. It is merely a tax grab, and will not address climate change or global warming.