Pricing carbon: cap & trade vs. carbon tax

My apologies for my lack of postings. For the first time in three years, I actually broke down and took two weeks vacation..but I am back and rested and ready to go again!!!

The Dion Liberals have recently mused about developing a policy for “Carbon Taxes.”

To date there are few specifics, but Dion has suggested that increases in consumption taxes would be “offset” by reductions in personal income taxes. Dion has said he will announce details of his plan by mid-June.

There is no greater crisis facing the planet then climate change and we welcome the debate.

Jack Layton and the NDP believes the most effective step in reducing greenhouse gasses is to place a price on carbon by establishing a “cap-and-trade” system, not a carbon tax.

The NDP’s plan will set caps on the amount of carbon a big polluter can emit, then establishes a carbon auction system where credits can be traded.

The NDP’s plan ensures that the big polluters start paying their fair share, while Dion’s plan ensures that average Canadians pay more.

The NDP’s plan ensures that all revenue raised from the big polluters will be invested in green solutions, while the Dion plan claims to be revenue neutral and therefore will have no new money for green solutions.

After years of inaction on climate change, it’s time to take on the big polluters. The NDP’s plan will ensure:

1. big polluters start paying their fair share;
2. effective and measurable targets to reduce pollution are established; and
3. revenues from the big polluters are invested in green solutions.

The two most urgent steps in fighting climate change are to curb the big polluters and invest in green solutions. The NDP’s plan accomplishes both; Mr. Dion’s is not likely to effectively accomplish either.

• Cap-and-trade is the international backbone of pollution reduction.
• A flat consumption tax is regressive because it treats all consumers the same, regardless of their ability to pay.

When you compare Dion's plan to Jack Layton's Plan, you need to do a side by side comparison. You can see the main differences in the two plans and can clearly see that where the NDP wish to go, would be a much better plan for all of Canada:

Top 5 worst things about Dion’s carbon tax

1. Equity
   • Low-income and rural Canadians are likely to be disproportionately impacted. A corresponding cut to income tax would not be a progressive answer to this problem.
   • Treats corporations and individuals equally in paying for pollution, when the largest responsibility should be on the shoulders of big polluters.
2. Efficacy
   • There is very little evidence to illustrate how much carbon taxes reduce greenhouse gas emissions.
3. No new revenue for green solutions
   • The Dion carbon tax claims to be revenue neutral.
4. Open to government interference
5. No details
   • To date, there have been no models designed for Canada and the absence of details from Dion are a concern to many working Canadians
   
   

Top 5 best features of NDP plan:

1. Targets the big polluters
• They are the ones with the power to drive the changes we need towards energy efficiency and cleaner energy.
2. Effective and proven
• Provides greater certainty of results in lowering emissions because the cap is fixed.
• Is a proven method that has already shown real results in reducing greenhouse gas emissions both domestically (used by Canada and the U.S. to combat acid rain) and internationally (European Union).
3. Generates revenue for green solutions
4. Free from government interference
• As a market-based system, it cannot be influenced by the Harper agenda.
5. Solid validators
• The UN Kyoto Protocol
• John McCain, Hillary Clinton, Barack Obama
• Green Budget Coalition
• European Union
• Intergovernmental Panel on Climate Change