--- John Foster <[log in to unmask]> wrote:
> >> 1. "some of the revenues from a carbon tax can also be used to
> >> compensate groups adversely affected by the tax."
>
> Steve writes:
> > If you take the money raised by such taxes and spend it you run the
> risk of
> >creating a perverse incentive where you never actually decrease the
> >activity, emission, whatever you are taxing. Why, because now you have
> a
> >group that relies on these taxes and wont be happy to see that revenue
> >disappear.
>
> It is obvious you don't understand the topic of taxation well enough and
> it's effect on economies and groups which face an unequal & high tax
> burden.
> Who pays the highest taxation currently? Well it is those people who are
> wage earners, the worker. Reducing labour taxes would improve
> productivity
> at the national level. As to your other question regarding tax cuts:
> Canada
> has reduced it's taxation levels both for corporations and for
> individuals.
> The province of Alberta will have no debt left in 2001 and this province
> has
> had surplus budgets since 1996. Saskatchewan also has had no deficits
> for
> several years. Ontario and BC are racking up huge surpluses this year.
> Despite all the tax cuts, our employment rates are high historically, we
> are
> now putting more funds back into our universal medicare, and we are
> creating
> a better environment in many provinces by establishing new protected
> areas.
> We plan far into the future and we don't always rely on 'for profit
> organizations' to supply essential services. One of the salient features
> for
> for this success is due to public funding of essential services like
> utilities, cost control in medicine, etc.
>
> Therefore following the Swedish and Scandinavian example of public
> investment we can have stability in our economy. Now the challenge will
> be
> to use those additional revenues which are now contributing to an
> economic
> surplus to invest in clean energy sources. And we are doing this. BC
> Hydro
> is investing a lot into energy efficiency, renewable energy, and
> restoration
> of habitat.
Sheesh that has to be one of the biggest non-sequiters I have ever seen.
What does any of your commentary above John have to do with perverse
incentives from using "sin tax" revenue for transfer payments?
Steve
=====
"In a nutshell, he [Steve] is 100% unadulterated evil. I do not believe in a 'Satan', but this man is as close to 'the real McCoy' as they come."
--Jamey Lee West
__________________________________________________
Do You Yahoo!?
Yahoo! Shopping - Thousands of Stores. Millions of Products.
http://shopping.yahoo.com/
|