Tuesday, September 23, 2008

Foreigners will pay our Carbon Tax

DION PRIORITIESStéphane Dion claimed recently that foreigners will pay some of his Carbon Tax when they buy our products.

Nice to think we could just pass on our tax to foreigners to whom we export our products and services thereby relieving some of the tax burden on Canadians. However, is this realistic?

The way I see it, companies must price their products so that they remain competitive in global markets, and there is not so much elasticity in commodity and manufactured goods' prices to allow Canadians to arbitrarily increase their prices without suffering a corresponding decrease in their volumes. And decreasing exports are not at all good for Canada or Canadian poketbooks.

Probably the most worrying aspect of the Liberal's Carbon Tax and their related Green Shift proposal is the enormous uncertainty and inherent risk involved. Untried and untested are words that come to mind.

I'll stick with prime minister Stephen Harper's judgement on this one.

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