Ok, I’m going out on a limb here. I’m actually going to discuss my views on the current federal election and no I don’t care how you are going to vote. I just thought this made a good story.
I finished reading the green party’s platform and you know what. It looks reasonable to me and what shocked me was it was honest. They really did put together a bunch of good ideas into one complete package that could really work. This honestly shocked me a bit. They just outright said, yes they are going to raise the GST back up to 6%, but they are going to fix up your cities with it. I’ve previously equated the Green party with a bunch of environmental nuts, but they also support no tax for people making less than $20,000 a year and income splitting for everyone. If I’m reading the policies right that would mean my family’s tax bill would drop by about $10,000 a year!
Ok, yes they do want to bring in a carbon tax at $50 a tonne, but they also want to bring in a tax credit for business of $50/tonne if they reduce their emissions from their current levels. Combined that would mean businesses could actually have a price of $100/tonne of CO2, which speaking from someone who works with carbon capture technologies that would mean just about every technology out there would suddenly be a cost saving measure for businesses. You would see a wave of new projects hitting the table and it would turn this country to a low carbon economy in record time.
So would this hurt us in trade? No, not necessarily, it depends on how that carbon tax is applied. If the carbon tax gets applied to imports as well as local products it will have mostly a short term effect. Long term we will have actually have an advantage. Our energy cost put into our products on average will be less that the US, so we might actually make some products that are cheaper than the US even with the tax. Is it going to be perfect? Gods no! There are going to be problems with any idea this big, but since when is doing the right thing the easy thing?
I’m now looking forward to reading the rest of the parties platforms to see which one I like the best overall, but so far it looks like I’m voting for the Green Party which is a little surprising to me.