Publication Description:
Canadian Centre for Policy Studies: Eight Arguments against a Carbon TaxIn this Canadian Centre for Policy Studies report (released Sept. 2008), David Murrell reviews a list of reasons why he believes a proposed carbon tax would be damaging to the Canadian economy.
After describing the basics of the proposed carbon tax, Murrell provides eight reasons he believes the carbon tax will not achieve its stated goals:
- A carbon tax ignores the macroeconomic reality of a possible recession/stagflation
- In a world of high energy prices, a carbon tax is not necessary for energy-use
reduction
- A domestic carbon tax in Canada will be inconsistent with emerging international
efforts to reduce GHG emissions
- The plan lacks coherence
- The carbon tax will further disadvantage Canadian exporters (both manufacturing
and non-manufacturing)
- The carbon tax will not be a substitute for cap-and-trade, but an addition to it
- A carbon tax will discriminate against energy producing provinces, and rural areas
- The carbon tax plan as proposed by the Liberal Party is really two plans in one: a tax
on carbon consumption and a plan to make the federal personal income tax more
progressive
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