Since the two largest anthropogenic greenhouse gas emission sources are energy and food, a carbon tax will significantly increase the cost of home heating, home cooling, and eating. Is that really what you want to see?

I mean maybe you have a severe hate on for disabled people, seniors, and others on fixed incomes but I think that plan stinks.

And a question for Warren…the $1000 rebate on a new Yaris, is that a one time deal? What if you sell it six months later and get a half ton truck? Just asking.

A person with a $25,000 income may only pay an apparent income tax rate of 10.8%, but if he spends all his remaining earnings, he pays maybe around 12% more in sales taxes. The apparent tax rate also ignores CPP and EI paid by both he and the employer. The employer’s portion flows through to worker in lower gross pay. After accounting for that and any of his spending on goods subject to excise taxes, the person’s tax burden is probably close to or over 30% of income.

High income earners spend less of their income and save more, so the burden of sales taxes is lessened considerably. Also, CPP and EI start declining as a percentage of income above a certain point.

That being said, they ruined it right out of the gate with the Income Trust tax debacle. It was obvious to most economists that these vehicles couldn’t continue to exist, so why lie? Oh ya, vote buying.

This is another kick in the balls. I got a $1000 rebate for my 2007 Yaris, and it factored into the decision making. I think it was a great idea… and “revenue neutrality” or something close to it is welcome.

I live in BC, so we’re getting the carbon tax shortly, but first I’ll get a $100 rebate ($200 total with my girlfriend). Combined with lower income taxes, this will more than offset the tax we will pay on gas for the Yaris over the next 12 months. Factoring in the increased cost for food and whatnot is more complex.

Regarding tax methods, income tax has the biggest economic detriment. I’d love to see the GST raised to 10%, and the equivalent tax break applied to income tax in the form of a higher basic exemption. It would encourage work and savings.. but clearly political suicide.

However, markets hate uncertainty and most governments are blowing it on the environmental file. The President of Sheritt International stated at the last annual shareholders meeting that all he wants is some clear guidelines on how to deal with carbon emissions (good or bad). Then, he can make the proper and informed decision. All we have now, other than B.C., is a bunch of pie in the sky, hogwash about emissions targets 30-40 years out with vague, weasel words and code. Just give us a damn, easy to follow, framework- good or bad- and we can make adjustments.

As also pointed out by a columnist, politicians either do nothing or too much. If they sat on their hands and let gas prices rise, the market would adjust accordingly. Look at all the talk about regulating SUV’s in the 1990′s. Now the market is gone and the government didn’t have to do anything.

Politicians- I tell ya…