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Trudeau shatters myth of ‘ideal’ carbon tax

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From the Fraser Institute

For several decades now, some economists have supported the idea of carbon taxes. An ideal carbon tax, they argue, is uniform across the economy, fuel/technology neutral, in lieu of—not atop of—additional regulations and subsidies, and revenue neutral.

Others, including myself, have argued that such an ideal carbon tax can never be implemented or maintained because of something called “public choice theory,” which holds that policymakers are not neutral, objective, dispassionate problem-solvers but rather self-interested agents who will enact policies primarily to advance their political interests, which guarantees corruption of “ideal” policies. If one understands public choice theory, one must understand that the ideal carbon tax is a myth, which would not survive its first contact with real-world political actors.

For example, in a 2017 study, I showed that none of Canada’s provincial carbon taxes were implemented in anything close to the ideal form (with the exception of British Columbia’s carbon tax, for its first few years). Still, many economists embraced the federal carbon tax, sure in the possibility of realizing the ideal form.

But last month, Prime Minister Trudeau elegantly ended the debate about the potential for ideal carbon taxes to survive in the political wilds and announced his government would postpone an expansion of his signature carbon tax. As you’ve probably heard, the government will suspend the tax on heating fuel used primarily in Atlantic Canada and provide additional subsidies to Atlantic Canadians by doubling the rural carbon tax rebate to help them switch from heating with oil to electric heat pumps.

This is a three-way violation of the “ideal carbon tax” concept beloved by some economists. Trudeau has made the federal carbon tax non-uniform, ended technological neutrality and—by exempting a swath of emissions—made it less efficient and effective. Again, in a political world, political self-interest will always lead to the corruption of ideal regulatory or tax regimens. Even the University of Calgary’s Trevor Tombe, a diehard fan of the carbon tax, now suggests it might be the beginning of the end for the entire idea of carbon taxes. The carbon tax is dead, he writes. Or at least, its days may be numbered.

Of course, Atlantic Canadians get a sweet deal—a three-year tax moratorium and more money in their pockets for heating equipment changes. On the other hand, the Prairie provinces once again receive the back of the prime minister’s hand, cementing (not that it needs much cementing) the perception that he dislikes the Prairies and seeks to punish them for having the temerity to resist his efforts to loot them of natural resource revenues and provincial sovereignty. Not only will Prairie folk not get a break on carbon taxes on their heating fuel (primarily natural gas) but they also won’t get increased rebate cheques to help them transition to lower-emission forms of heating and cooling.

Prime Minister Trudeau’s move to pervert the federal carbon tax even farther from the economically ideal model proves yet again that such ideal forms are always inherently doomed to corruption by the political process. The harmful impacts of a carbon tax, unmitigated by those various “ideal” caveats, is landing on the pocketbooks of the public, and one suspects the prime minister knows it. He should consider stealing an issue from his leading political rival and take an axe to the tax he created, rather than leave that chore to his successor.

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Opposition leader Poilievre calling for end of prorogation to deal with Trump’s tariffs

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From Conservative Party Communications

The Hon. Pierre Poilievre, Leader of the Conservative Party of Canada and the Official Opposition, released the following statement on the threat of tariffs from the US:

“Canada is facing a critical challenge. On February 1st we are facing the risk of unjustified 25% tariffs by our largest trading partner that would have damaging consequences across our country. Our American counterparts say they want to stop the illegal flow of drugs and other criminal activity at our border. The Liberal government admits their weak border is a problem. That is why they announced a multibillion-dollar border plan—a plan they cannot fund because they shut down Parliament, preventing MPs and Senators from authorizing the funds.

“We also need retaliatory tariffs, something that requires urgent Parliamentary consideration.

“Yet, Liberals have shut Parliament in the middle of this crisis. Canada has never been so weak, and things have never been so out of control. Liberals are putting themselves and their leadership politics ahead of the country. Freeland and Carney are fighting for power rather than fighting for Canada.

“Common Sense Conservatives are calling for Trudeau to reopen Parliament now to pass new border controls, agree on trade retaliation and prepare a plan to rescue Canada’s weak economy.

“The Prime Minister has the power to ask the Governor General to cut short prorogation and get our Parliament working.

“Open Parliament. Take back control. Put Canada First.”

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Carbon Tax

Carbon tax tripping up Liberal leadership hopefuls

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The Liberals and progressives everywhere were so close.  At the height of their influence, no one, certainly anywhere in the English speaking world could make this claim: “Climate change IS NOT an existential threat to planet earth.” Those who did were immediately sidelined, ostracized by their cohorts, dismissed by corporate media and social media behemoths. Sure the battle still rages, but only in their information world where you still see phrases like “climate change denialist”.

You see their information world has not yet realized something new has happened.  History writers will say Elon Musk stopped the progressives in their tracks by buying Twitter, releasing the Twitter files and eventually with Donald Trump, swinging the information world in the direction of X.  If you have doubts just look at this picture.  While the Twitter files reveal the new information world was under the, let’s say ‘secret influence’ of the White House, this photo shows those same tech power brokers are publicly, and happily celebrating the man they worked secretly to bring down.  Or at least they’re not ashamed to publicly text their friends about it. The fact they’re not hiding probably reveals their eager support.

Sometimes we find it’s the people we look down our noses at who make all the difference.  Like those overweight beer-guzzling hunter types who wear the red hats. (No not the Roman Cardinals, but the Appalachian trailer house occupants). These conspiracy theorists started to proclaim that the world would in fact not burn up by next weekend.  Sure many of these seemed to be the same people who claim the world is flat and their neighbor is from another planet.  But then more people stepped forward.  Not about ‘pancake Earth’, but about the existential threat of climate change.

Family members and friends scorned and ridiculed them, and many still do.  They were outraged that a regular citizen would dare to share information from a completely sane climate scientist or researcher who did not agree with the majority. They’d lose their marbles on those silly enough to cite a peer reviewed scientific paper.  IF anyone was bold enough to take the time to read an entire report from NASA or Environment Canada, well you’d certainly hear someone say “You fool! You can’t do your own research!! You’re not a scientist!!”

Fortunately, funny man podcaster Jimmy Dore has the perfect comeback for these situations.  Dore says when his own friends warned him only a Conspiracy Theorist would do his own research, he replied “You know before COVID doing your own research used to be called… reading”.  It’s really worth two minutes to check this out.  If you don’t find it funny, really funny, then I’m sorry. One day you will.

Speaking of reading, in the days before the printing press the Church and various wildly wealthy monarchs had a stranglehold on information sharing.  Those who contradicted the party line could have their heads chopped off by a guillotine bought and paid for with their meagre tax offerings, or, they could expect to be publicly shamed and eternally condemned by their local preacher.  Sure some of them probably deserved it but who am I to judge?

Then the printing press was invented. At first the Church leaders said, “Great now everyone can be educated, learn to read and even write themselves, and study the Bible on their own!”  Eventually some of those same leaders said, “THIS IS A DISASTER! Everyone can be educated, learn to read and even write themselves, and study the Bible on their own!”  After a few centuries the power structures in Europe completely changed.  The Church divided into thousands of Protestant movements and the Catholic Church forever lost the political clout it never should have appreciated.  Universities sprung up around libraries. Monarchs handed over power to early democratic governments. Books about science lead to scientific innovations. Average Joe’s eventually moved from underground mud huts to middle class condos in the sky.

Well the same thing is happening now with the internet.  Except at breakneck  speed.  What took the printing press hundreds of years to accomplish, takes the internet a few months.  The emergence and re-emergence of Trump Presidencies, revolutions against power structures, could not have been accomplished without the way we get information on the internet.

Sure there’s a lot of murky confusion as corporate media used to their powerful podiums of the printing press and cable tv are moving their content over to the new medium.  But they’re being (sorry it’s all over, they have been) overtaken by the new form of information sharing.  We’ve gone from headlines and ten second sound bites, to three hour long conversations with plenty of time for explaining and context.  That’s something cable tv just didn’t have enough bandwidth to deliver.

So what does this mean for people trying to buy 1,200 square foot condos in Canada today?

Well we get to watch the power brokers struggle to retain their grip on / over our lives.

Those running to replace the son of … Hmm. Here’s a perfect example. Depending upon where you get your information from he’s either the son of Pierre, or he has an incomprehensively uncanny and impossibly accidental resemblance to a close personal family friend.

Those running to replace Liberal Leader Justin (let’s leave the last name out until the DNA results are back) definitely believe his father is Pierre. They believe Russians are our enemies.  They think COVID vaccines saved the world. They think NATO is protecting Ukraine. And they certainly believe if we pay higher taxes in Canada we’ll save the world from the temperatures many of us pay thousands of dollars to escape to for a few days for six months of the year.

Carney, Gould, and Freeland don’t seem to realize everyday Canadians are simply done with the idea that a Carbon Tax in any form is going to save the world.  Thanks to the internet, regular folks/voters have had time to do a little reading and listen to a few long conversations about this.  Average people are understanding that CO2 makes up not 40% or 60% of the atmosphere, but .04%.  Of that .04%, less than 4% is caused by humans. Mathematically it’s silly to think that paying more for food and groceries and everything else in Rosetown, Saskatchewan or Red Deer, Alberta is going to stop, slow down, or make any difference at all to global temperatures in 20 years.

It’s ironic that it’s the modern progressive movement who are stuck in the old information age.  You’d think the slower thinking conservatives would hold on to the old ways and they’d be the ones trying to enforce restrictions on the new communication movement.  Somehow the self proclaimed forward looking progressives are the ones trying to censor.  Maybe it does make sense.  Conservatives are more likely to read their history.  They know the ones who censor are always trying to retain their failing grasp on power.  New information consumers are ready, willing, and annoyingly attempting to debate.  But there’s no debate for those who say “The science is settled.” I guess that means they’re all finished learning things.

Sorry to the Liberal Leadership hopefuls.  They haven’t heard the news.  Well actually they have and that’s the problem.  Instead of paying attention to what’s really happening, they’re dismissing everything and everyone who doesn’t appear on the cable news channels.. other than to be ridiculed that is.

I leave you with this short video from Franco Terrazzano of the Canadian Taxpayers Federation.  Franco explains how those vying for control of the PMO are tripping over their new versions of an old and failed Carbon Tax. Pity them. They don’t realize voters have moved on.

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