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A tale of two carbon taxes

I imagine Stephane Dion spends a lot of time wondering exactly what went wrong…

by Colin Campbell on Tuesday, September 9, 2008 10:40am - 19 Comments

I imagine Stephane Dion spends a lot of time wondering exactly what went wrong with the Green Shift. It’s not like he was wading into untested waters when he launched it. When Gordon Campbell introduced a carbon tax plan in B.C. last July he was applauded for what was, at the time, considered a brave, bold move. This was a policy created by economists and approved by environmentalists. Perfect for a politician who wanted to show he was ready to move beyond pointless promises to meet long-term emissions targets (ie. Kyoto).

Gordon was cast as a hero. But Dion, he’s mostly the villain. As this story in the Vancouver Sun notes, Conservatives in B.C. are even being told to quietly support Campbell’s plan, while rejecting Dion’s. Go figure.

No doubt, Dion’s troubles have something to do with timing. He launched his plan at the worst of times, as oil and gas prices were in the midst of their biggest run-up ever. Still, an interesting case study of two politicians selling the same plan with very different results.

Tags: campbell, carbon tax, dion

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Scott M.

So you’re ready to write it off already?
Colin Campbell

Nope. I’m just saying the Green Shift hasn’t been embraced like Campbell’s carbon tax.
http://skinnydips.blogspot.com SD

I am going to bet a penny that if Harper remains prime minister after the election, that he will impose some kind of carbon tax. It will probably be called an environmental premium.
Steve M

I read the Vancouver Sun story and it’s pretty weak on evidence. All they have is the word of a rejected Conservative nominee.
http://carnewsandviews.com jwl

“When Gordon Campbell introduced a carbon tax plan in B.C. last July he was applauded for what was, at the time, considered a brave, bold move. This was a policy created by economists and approved by environmentalists.”

Applauded by who is the question that should be asked and the answer will lead you to why Green Shift is not going over well.

And who, but economists and environmentalists, created Kyoto? Are we not to question policies just because some left wing economists and tree-huggers declare they like a program.
Andrew

“left wing economists”

Hah… you’re ridiculously uninformed.
T. Thwim

You mean left-wing economists like Thomas Friedman, jwl?
http://carnewsandviews.com jwl

T Thwim

Don’t know if Friedman worked on the BC plan or not but he’s a good start as an example for left wing economists. Friedman thinks it would be a good idea if we turned into China for a bit so government can impose their energy policy without any backchat from the hoi polloi.
James

I suspect the conservative candidates in BC will use the unpopularity of the BC carbon tax as a launch point to dismiss Dion and the Green Shift plan. In fact, I’ve heard as much from one of them so far.
Bailey

Or that known left-wing economist Greg Mankiw or Arthur Laffer or Paul Volcker or Alan Greenspan or heck even David Frum.

http://gregmankiw.blogspot.com/2006/09/rogoff-joins-pigou-club.html
T. Thwim

I suppose a trick question wasn’t quite fair, but I thought it was a good way to point out that jwl doesn’t know the difference between an economist and a journalist, hence why he thinks economists are left-wing.
http://members.shaw.ca/nspector4 Norman Spector

This is a complete misreading of the situation in British Columbia.
D

It’s not over until the fat guy (Harper) sings… er, concedes.
Scott M.

What is a complete misreading? The comments or the blog post?
Greg

Why do many of you not believe in the existence of left wing economists? Every national union has a few on staff to lobby the media, and generally advocate the socialist economic viewpoint of their membership (or at least leadership).
Andrew

I imagine you’ll find many of those hacks are likely opposed to the green shift.
http://www.thebrandingexperts.ca Ed

A couple of things bother me about it.
1- That it will be revenue neutral. What have the Liberals ever done that works out costing what they estimate?
2- The only solutions Canadian politicians seem to have is another tax. It’s as though they themselves are immune to them. But then with their tax-free allowances I guess they might be.
3- Call me cynical, but I can’t recall any tax that goes to where they say they’ll put it. ie: the tire tax (was supposed to be for infrastructure) Another great idea during its time.
4- Every single one of them, regardless of party LIE to us and we are stupid enough to elect them.
T. Thwim

Ed:
1. Quite a few things. You just don’t hear about them because they’re not news.
2. You should like the green shift then, because tax exemption won’t benefit politicians there.. the taxes will be built into the end costs. As a side point, every income tax cut is actually a cut to the amount of real buying power a politician has, whereas every increase in income tax is the reverse, since they don’t pay it and we do. This is why Harper raised income taxes while lowering the GST (which does benefit him).
3. I’ll not only call you cynical, but ask how you reconcile your number 1 with this one. They really can’t put the tax somewhere other than where they say if where they say costs more than they said it would. The money for it had to come from somewhere, after all.
4. The rhinos haven’t lied to me yet, and we haven’t been stupid enough to elect them. Oh wait.. maybe that means I agree with you on this one. Ah well.
http://www.kontrol.ca kontrol

If you listen to Stephen Harper explain his policy for reducing greenhouse gasses you have to wonder what liberal pipe he has been smoking?

http://web.me.com/kontrol.ca/Site/Politics/Entries/2008/9/13_Harper_Explains_his_Green_Tax.html