Friday, November 28, 2008

The Economy and Carbon Tax

Well it looks like the economy is on peoples minds in BC, according to a poll released by Mustel Group Market Research. What is interesting to note is the other top issue (thought it’s like comparing iPods to Zunes) is the environment.

I was listening to a speaker on Monday night talk about how, in the hard times, societies can change for the better. Take the Great Depression in Canada. We got the Bank of Canada in 1934 to control the money supply, federal government funding for public infrastructure, and the introduction of unemployment insurance and other forms of social security. Now, I’m not saying that depressions are good, but because they take us out of our comfort zones, we are more apt to trying new ideas.

If you know me, you know that I have some issues with the current government at the federal and provincial levels. I will stay this very strongly: the Provincial government should be praised for introducing a carbon tax while at the same time lowering our income tax. I don’t know why the “lowering income tax” message is not getting across. Incoming tax is not a good idea; it’s confusing, costly to manage, and unfair. By shifting to a consumption tax we can ensure that everyone pays their fair share taxes (no matter how much income they are hiding), encourage savings and investment (a consumption tax would not be levied on savings, investments or capital gains), and use the tax in the same way as our PST (Social Service Tax) for the good of the province. That is why I support Carbon Tax. In fact if we move to a complete consumption tax system, I’m sure it would energize the economy, lift stagnant wages, give people more money in their pockets, and create jobs in this hard time: all this while doing well by the environment and providing revenue for things like light rail. In this new era, our governments have the chance to try out new ideas. Let’s give consumption tax and carbon tax a try.

Shame on ANY political party that tried to oppose a carbon tax or any other consumption tax that reduces our income tax. It’s time for consumption tax; we must keep the carbon tax.

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