A Carbon Tax, the Arts and the Canadian Taxpayers Federation

There is a point where ideology can exceed common sense, and one might wonder if that is happening with the Canadian Taxpayers Federation.

One month ago Maureen Bader, BC director of the CTF, came out against arts funding stating that government subsidies to the arts should be abolished. Bader sees the arts as business activity, but it is more appropriate to compare investment in the arts with investment in things like parks and recreation. Perhaps Bader isn't aware of the difference between investments and subsidies.

According to a 2001-02 Statistics Canada report, with an investment of $6.8 billion from three levels of government, the arts and culture sector directly employed 740,000 people and generated $26 billion for the economy. I'm sure Bader doesn't want to hurt our economy, so it might be that she just doesn't understand the concept of EROI (economic return on investment).

Then Maureen Bader misrepresented carbon taxes while making fun of global warming 'theorists' <--(her term).

Poverty is a serious concern, and Bader's use of the issue to breed fear of a carbon tax is misleading. By suggesting that we imagine carbon taxes "so high that people can't afford to heat their homes in the winter" in the opening of her missive entitled The Carbon Tax Poverty Effect, she tries to scare us out of using critical thinking to examine the situation. By listing "global warming theorists" as beneficiaries of a carbon tax, Bader manages to question the reality of climate change while suggesting that public concerns about climate change are somehow preyed upon by scientists for financial gain. Ridiculous! This suggestion seems more like a call from Bader to question the science of climate change than a sincere concern for Canadians living in poverty.

It is irresponsible of Bader to haphazardly dismiss the seriousness of climate change, and by conflating the subject with poverty she leads the reader to conclude that action on climate change in the form of a carbon tax will invariably lead to widespread poverty. It's also irresponsible to dismiss the concept of a carbon tax without first investigating how it could be implemented correctly, or why many respected economists support the idea.

Only one national political party is calling for a carbon tax and suggesting that the revenue be used in part to reduce income and payroll taxes, as well as kick start green energy industries. This tax shift can be as close to revenue neutral as we want, and Canadians can decide for themselves if they wish to spend their tax savings in ways that reduce or increase carbon emissions and climate change.

In the absence of tax shifting, a carbon tax would likely impose a higher cost on some people than on others, in particular those who cannot afford to upgrade their energy efficiency or who have no alternative to driving long distances. The Green Party would use tax shifting in a way that provides equivalent tax breaks to such people, so that they would not suffer economic hardship. We cannot afford to dismiss the use of carbon taxes, and using tax shifting to achieve fairness is a way to make it work.


More reading:

Arts ire for canadian taxpayers federation

Is the Canadian Taxpayers Federation Right-Wing?

Canadian Taxpayer Federation being Dishonest with Canadians

Get The Prices Right (on tax shifting and GPC policy)

Green Tax Shift will protect Canadians against gas price shocks, says Green Party

Video: Dr. Mark Jaccard talks about carbon taxes

Carbon Tax FAQ

from the link above:
Q: Won’t low income and rural people be hardest hit by a carbon tax?

* In the absence of tax shifting, a carbon tax would impose a higher cost on some people than on others, in particular those who cannot afford to upgrade their energy efficiency or who have no alternative to driving long distances.
* The Green Party would use tax shifting in a way that provides equivalent tax breaks to such people, so that they would not suffer economic hardship.
* We as a society cannot afford to dismiss the use of carbon taxes. It’s much better to use tax shifting to achieve fairness.

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UPDATE (Feb 21st, 2008) Click here for a good blog post on the new BC carbon tax by Vancouver Island federal Green Party candidate Brian Gordon.