Apr 6, 2011

The Liberal Green Shaft: The Mother of All Taxes

Repeat after me:

"Cap and Trade" is a "Carbon Tax", and is the Liberal Party of Canada's motherlode of taxes needed to fund their high-cost, big-spending programs.

Under "cap and trade", a government sets carbon emission targets. In the case of the Liberals, this would be Kyoto fairyland targets. Businesses and industries, if they are above targets, can make massive investments to come into compliance, or can buy offsets or credits from those who are below target to come into compliance. Either way, the cost is passed onto the buyer of its products, i.e., you and me ... the consumer. Governments collect more tax revenues (GST/HST) on these higher prices.

So far, as we can see, governments were enriched and consumers were made poorer. But there's other "winners" in this gouging scheme also. Carbon credits can be auctioned by governments for profit, they can be sold for profit on stock markets, and they can even be sold by another government directly, e.g., The Botswana Boondoggle.

The boondoggle arises because Botswana has no industry, no pollutants. And therefore has "credits" to sell. Canadian businesses could buy these "credits' from Botswana, the consumer being the end-payer of course through higher prices passed through from businesses. No wonder African nations, at the height of the global-warming frenzy, wanted the West to adopt cap and trade. "Free Money", folks.

Has anything changed "to save the Planet" in this example? No. But Botswana has been enriched (just who in Botswana, you might ask), the Canadian government has been enriched through more tax revenues, and the consumer has been well and truly SHAFTED. Thus the phrase, "The (Liberal) Green Shaft".

So what's the world experience with Cap and Trade been, you say?

In Europe, this gouging scheme has been more promise than reality, and practically discredited. The cost of carbon credits on the exchanges there is at a pitifully low level. Northern Ireland's Minister of Finance Sammy Wilson describes it as "a massive job killer, while simultaneously driving consumer goods and energy prices dramatically upward".

Denmark’s Dr. Bjorn Lomborg states that while cap and trade supporters argue global warming’s costs will be $3 trillion a year by the end of this century, meeting cap and trade objectives would require spending $40 trillion annually and gasoline would rise to $9 a litre, or $35 a gallon. Dr. Lomborg is not a global warming denier, by the way.

This figure ties in nicely with assertions during the 2008 election that Dion's Green Shaft would result in about $188 billion in increased costs washing through the Canadian supply system over a six year period. Indeed. Bend over, please.

The United States has wisely canned any action on global warming generally, and "cap and trade" specifically. The smog that Torontonians see each summer is generally inspired from American electricity-generating coal plants south of us, by the way.

China, of course, is now the world's largest polluter, and has refused to sign any carbon reduction agreements, including Kyoto. Given that they are erecting more than a hundred new coal-fired power plants a year, their stance is not surprising.

And if you believe the various publications of global-warming believers, livestock may produce up to 50% of the world's greenhouse gases through flatulence. Do you think that Argentina, with its large cattle herds that supply the world, is going to give a moment's thought to this latest greenhouse gas claim, or to purchase carbon offsets?

Wrap Up

The Liberal Green Shaft creates few new jobs, yet increases prices and taxes dramatically in response to artificial, Alice-in-Wonderland policies chasing a now thoroughly discredited, manufactured scare --- "Global Warming". The world temperature trend is now scientifically verified by independent parties to have been solidly downwards since 1991-2, thanks. The UN report, and "scientific authorities" (mostly from African nations, wonder why) that authored the fraudulent report that gave legs to the Global Warming Scam, have slithered back to their lairs.

Combine this with the Liberals' assault on jobs in their 2011 Red Book, and you have the makings of a disaster. As Jack Mintz, globally respected tax expert and head of the School of Policy Studies at the University of Calgary says, the Liberals corporate tax increase commitment will cause the elimination of 200,000 jobs and forgo future tax revenues to the government of $50 billion!

That's not to say that we can't clean up the air we breath. And we should. But let's do it by having polluting corporations upgrade their facilities economically, steady and surely, without massive price and tax increases to consumers. This is where the Conservatives are going, and where the Liberals should go if they had any sense. As Roy Green says in the National Post, it's time for the Liberals to have Stephane Dion rewrite the Cap and Trade section in the 2011 Liberal Platform.

Our national strategy for cleaner air should also be cognizant of wind direction. Airflow is west to east, meaning that we can blow our brains out to make our air cleaner, only to give more "space" for Chinese coal plant emissions to arrive! Let's be sensible and realistic, folks.

The Liberal Green Shaft, a.k.a Cap and Trade. a.k.a. Carbon Tax, is anything but reasonable. It's just a massive hit on Canadian consumers and businesses, at a time when the economic recovery around the world is uncertain. With unemployment rates rising above 20% in Ireland, Spain, Portugal (to name a few), and many EU nations being on the brink of bankruptcy, there's too much risk to our economy to adopt the Liberal job-killer platform.

Japan, by the way, will need to use 100% of its budget to service interest costs on its national debt (200% of GDP!) if interest rates rise by 1%. Now that's scary. And an excellent example of the "economic fragility" that Mr. Harper speaks about.

And, by the way, it's our oil energy sector out in Western Canada that's been carrying us through these recessionary times. Let's not screw it up.

Reject the 2011 Liberal version of the DeathStar --- the Liberal Green Shaft.

And insist that Canada's media, particulary the advertising agencies of the Liberal Party (CBC, CTV Newsnet, Globe & Mail, and the Toronto Star) serve Canadians properly by addressing this issue. It's Canada's future that they are playing around with in their petty fashion.

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