Carbon Tax Would Hurt Low Income Earners

Perhaps I should go into more detail about why the proposed carbon tax has struck a nerve with me outside of my conservative mindset. Being a university student, I'm a low income earner. I drive a fuel efficient car. Yesterday, I noticed I had less than a 1/4 tank of fuel left. The gas station was selling it for $1.12. Too expensive I said. Unfortunately, the price shows no sign of dropping. Gasoline in itself is currently overpriced by a fair amount. The price spikes are fuelled mostly by speculation of investors, so they're artificially inflated. I remember hearing Liberal MP and gas crusader Dan McTage say it should be around $0.80 - $0.90 per litre given the current market. I realize that $1.12 is not really that expensive given the Canada average today is $1.18. So yes, there are people worse off then us in the GTA. I can still remember freaking out when the gas hit $1.30 after Hurricane Katrina, though fortunately, the company I worked for at the time was paying my gas bill since I was using my own car for business.

So what does this have to do with the proposed carbon tax that many economists are advocating? The answer is simple, everything! As you know, I do not support the anthropogenic global warming argument and in effect, I think taxing carbon emissions would end up doing nothing what so ever in that respect. The problem is that it's not big polluters they want to tax but rather add it to the fuel excise tax on gasoline, which would amount to a minimum of an additional $0.10 per litre. If added to today's price, that would bump up costs to $1.22! For American readers, this would roughly equate to $4.40 per gallon. British Colombia was the first province to enact a carbon tax and it already has some people in the north fuming over rising fuel costs.

What the environmentalists forget is that unless you live in an urban area, public transit is not an option. Even then, it's iffy. Rising fuel costs there have bumped ticket prices up 22% in the last five years for a one-way cash fare. I expect the TTC to raise their fare to $3 by 2009 given their current history. Also, our public transit systems in Canada are probably some of the worst in the first world. Slow, rarely on time, using outdated equipment, and run by unions who threaten to strike every five minutes. For most of us, the car is the better way, and in fact the only way. Yet there has been a march against drivers recently with higher license fees, registration fees, proposed road tolls to lower congestion, higher insurance costs, higher fuel costs. The list goes on. It's quickly getting to the point where many low income earners can't afford to drive. That means they can't get to their jobs, and are therefore out of work. There are also people who drive for a living, such as truckers, who have seen big chunks of their income taken by fuel costs. The cost therefore is added onto the final product, which is why we're seeing food prices spike.

Of course, we all know how the Canadian tax system works. Sure it's a proposed $0.10 now but how long before it's $0.15 or $0.20, which is what some climate hysterics are already demanding. Economists claim that the money will be used to lower personal income taxes so in effect, you're not really paying more. Do these people have no idea how the Canadian government works?! The original gas tax was supposed to go directly to roads and transit but it does not. Everything goes into one giant pot. It's unlikely that Liberal or even Conservative governments will give all the money back to the tax payer. We'd be lucky to get half of it back, if any at all. Besides, if that's the system you want to use, why even institute the tax in the first place. It just makes no logical sense. Then again, little concerning environmentalism and Canadian taxation does.

Carbon taxes do not punish the people driving the Escalades and Hummers because since they can afford those expensive gas guzzlers, they can afford to absorb the extra fuel costs. It's low income earners who will suffer from a carbon tax as fuel prices for their vehicles. I haven't even discussed how this would affect people who use oil and natural gas to heat their homes, because surely they'll be the next target. When does it stop? The proposed carbon taxes would do far too much harm and no good at all. They would effect the lowest income families the most, those that the liberals claim to advocate. The carbon tax is something we should not even be considering.