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Monday, October 6, 2008

Liberal hidden agenda: new $40 billion Carbon Tax

Apparently, Stéphane Dion and his Liberal Party are hoping that Elizabeth May was correct when she said that Canadians are stupid. That's the best explanation I can find for them moving their new $40 billion Carbon Tax under the counter, so to speak. The wrong-headed tax is seldom mentioned these days except in a vague sort of way.

When it is mentioned, Liberals like to refer to the Carbon Tax as being revenue neutral in the hope that Canadians will miss the the true nature of this tax.

Carbon Taxes will yield something like $40 billion in revenue over the planning horizon chosen by the Liberals. Canadian taxpayers, therefore, will pay $40 billion more for their goods and services when these taxes are passed on to consumers (home heating, food, etc.). Revenue neutral means that the Grits are guaranteeing that they will spend the entire amount of the tax they collect, so there will be a zero gain for government coffers.

The Grits, however, are counting on us assuming incorrectly that the tax will be returned to us individually dollar for dollar. Such will not be the case.

Yes, some of the new taxes will be returned through a reduction in income taxes, but the "shift" will be included in a massive, multi-billion dollar income redistribution. Probably the greatest attack on the wealth of the Canadian middle-class since the federal income tax system was introduced almost a hundred years ago to help pay for the First World War. (In 1917, with the Income War Tax Act, the Government of Canada introduced a temporary general tax on personal and corporate income.)

Of course the Liberals plan to spend every cent of the tax collected. That is, after all, the Liberal way: tax and spend. The tax, however, mainly will come out of the pockets of the middle class and the spending will not benefit them nearly as much as it will others. In other words: redistribution of wealth. The Canadian middle-class is already paying their fair share to help the less fortunate, and to increase their burden is grossly unfair.

I did the math. Using the calculator on the Liberal Party web site: a couple under the age of 65 with two children under 18 and a total family income of $60,000 a year will receive total benefits under the Green Shift of $1,438 or $120 a month.

That's about $4 a day folks or $1 a day per person. Does anybody really believe that a Carbon Tax of some $15 billion in the fourth year is only going to cost these family members $1 a day each? I don't. The Grits tell us how much we'll save; but they are careful not to tell us what we'll spend when the Carbon Taxes trickle down to us. They know, but they'll not spell it out.

That's the hidden agenda Liberal-style.

2 comments — This is a moderated blog and comments will appear when approved. Please don’t resubmit if your comment doesn’t appear immediately, and please do not post material that is obscene, harassing, defamatory, or otherwise objectionable.

  1. Moreover it is likely the Green Shift will actually result in more CO2 emissions. Click Here for article

    ReplyDelete
  2. Dion and May are always holding the EU up as an example of success. Well not now. google 'EU, carbon tax' It's not very green across the pond.

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