Dion’s Carbon Tax Flip-Flop Will Punish Taxpayers

June 23, 2008

Dear Editor,

Last week, less than two years after he denounced carbon taxes as “bad policy”, Stéphane Dion broke his word to Canadians as he publicly announced plans to impose a permanent new tax that would punish taxpayers at a time of rising prices. He dubbed his new tax grab a “green shift”.

In addition to hitting electricity, which would put Canadian manufacturers at risk, and home heating fuel, which would hit seniors on a fixed income, Mr. Dion’s tax grab would also hit the price of diesel. Mr. Dion’s plan promises to almost triple the tax on diesel. This will increase the cost of everything transported by truck or train - including essential items like food, clothing and gasoline.

Although Mr. Dion insists that his permanent new tax would not raise the price of gas, every carbon tax imposed in Europe has hit gas prices. Hard. The carbon taxes imposed in Quebec and in BC have hit gas prices too - as the cost of the carbon tax paid by manufacturers is passed onto consumers.

Despite Mr. Dion’s denials that his carbon tax will hurt Canadians, Mr. Dion’s finance critic, John McCallum, has already confessed, “I cannot say to you that no Canadian will be unharmed,” by a carbon tax and admitted, “it's not going to be totally painless for every human being.” This sentiment was echoed by leading climate change expert Marc Jaccard who admitted that under a Dion-style plan, “some people will be better off and some won't.”

As to Mr. Dion’s protests that the carbon tax would be revenue neutral, a healthy dose of scepticism is in order, especially because of all the spending promises Mr. Dion has made to his special interests. The plan will not be revenue neutral; how can it be when everyone pays and only some people benefit.

Sincerely,

Brian Jean
Member of Parliament, Fort McMurray – Athabasca