Thursday, July 03, 2008

The best tax is a consumption tax.

Taxing consumption is one of the most economically effective methods of generating government revenues without distorting the economy. Consumption taxes create incentives for individuals to save more of their after tax income and for business to invest more in their businesses.

Consumption taxes are good taxes.

BC's carbon tax is an excellent shift in the tax mix – less tax on income and more tax on consumption – in a revenue-neutral fashion of course. Shifting the mix towards consumption and away from income taxes encourages savings, investment, and work, all the while helping to reduce greenhouse gas emissions in the case of our carbon tax.

BC’s decision to show leadership in reducing greenhouse gas emissions certainly isn't pleasing everyone. Especially all the climate change deniers in the NDP.

But the carbon tax is a plan based on sound environmental and economic policy (as a long list of environmental groups and 70 economists have endorsed) and it represents a good start in tackling the problem of green house gas emissions.

The tax does a great job of striking a balance between implementing a tax aimed at altering our behavior and at the same time it provides businesses and individuals to adjust to the increased costs over time. Could you imagine the howling if the three year carbon tax increases were implemented all at once? For those of you who have either never taken economics or if you are too stupid to understand, let me be clear; consumption taxes alter taxpayer's behaviour over time!

I have always been a big fan of consumption taxes - like the GST. I love seeing it on everything I purchase. It makes you think about your consumption; you see it every day at the till. It helps you make sound choices with your after tax income. I would prefer that governments lower our income taxes and increase the GST to a rate of 10% or higher in a revenue neutral way.

The carbon tax is another good tax that will go a long way to reducing the consumption of carbon in British Columbia. I strongly support any shift that moves the tax mix away from income towards consumption in a revenue-neutral fashion.

Premier Campbell keep up the good work!

Wednesday, July 02, 2008

Hey stupid, it's only 2.4 cents!

By the sound of it, the world ended as we know it in British Columbia on July 1st, when Gordon Campbell's BC Liberal Government instituted North America's first "carbon tax". The media is full of comments from angry consumers saying, "how dare they put a 2.4 cent per litre tax on my gas".

It's the price of gas that's making you mad - not the carbon tax. Never mind that the new tax is revenue neutral. Never mind that as of July 1st residents of B.C. earning up to $111,000 per year now pay the lowest personal income taxes of any province or territory in Canada. Never mind that we are recieving a $100 “climate action dividend” cheque.

Damn it - "Axe the Tax"! We want to drive our honking big SUV's to the corner store to pick up some Frito Lays, we don't want to pay 2.4 cents a litre more in gas taxes.

British Columbian's, give your head a shake and wake up to the reality of what you are really angry about. After all we are only talking about a few cents. The price of gas changes a few cents every day already. The 2.4 cents a litre increase in gas prices is minuscule compared to the recent market increases, and the tax is designed to move us away from a continued reliance on increasingly scarce and costly fossil fuels. The whole point of British Columbia's first carbon tax is to decrease gas consumption and carbon emissions in general.

Hmmm, what a novel idea. Make something more expensive and people will use less of it.

If you are truly upset by the increase in gas prices make some choices! Drive less, use public transit, car pool, walk, or ride your bike. Ultimately if we want people to reduce greenhouse gas emissions we need to use less fuel / carbon.

Tuesday, June 24, 2008

NDP Style, "Tax to the Max"

It's interesting to see that the political left in British Columbia are out attacking the BC Liberal’s plan to deal with climate change. They have even come out with a cute little slogan called “Axe the Gas Tax”. While the slogan has a nice ring to it, the issue highlights once again the NDP’s complete lack of ideas to deal with an issue.

NDP Leader Carole James is slamming Gordon Campbell and the BC Liberals saying, “the gas tax only hurts consumers who are already suffering”. James adds, "instead of taxing consumers, the government should target major industrial producers such as the gas, oil, cement and aluminum industries".

Isn’t that a nice idea; just make someone else pay. What a great idea!
We’ll just make someone else pay. However making industrial producers pay more will only raise costs to business, and you can be sure that those costs will be passed on to you and me, the consumers.

The NDP's framework on climate action says, “Climate change is the biggest issue facing our generation and every one needs to be part of the solution”. For your information that's what the carbon tax is meant to do, make everyone part of the solution.

So the question is; are the NDP just stupid or are they just dishonest?

Friday, May 16, 2008

Big Labour hiding from full disclosure.

This morning British Columbia's big public sector unions were running full page advertisements in the provinces three largest newspapers attacking the government's Bill 42 which limits third party advertisements to $150,000 and 148 days prior to an election.

How ironic that the very groups being limited for their multi-million dollar ad campaigns are defending themselves by running yet another expensive attack ad campaign. This morning they were spending tens of thousands of dollars in the print media arguing for unlimited third party spending.

What's wrong with full disclosure of how much is being spent and by who, to fund political campaigns?

Why are public sector unions trying to hide how much they are spending on political advertising from British Columbians?

How fair is it for public sector unions to spend millions and millions of dollars to defeat the government without including this under a spending limit on election campaign spending?

Are public sector unions trying to Americanize our political system, where the group who spends the most money wins?

Frankly the BC Fed - BCGEU - BCTF - COPE 378 - CUPE BC - FPSE - HEU - and the HSA's dishonesty is unconscionable!

Lets be clear, money influences voting!

BC's public sector unions are trying to influence the outcome of our elections by spending millions to fight for or against a particular candidate or political party. This participation of third parties, like candidates and all political parties, cannot be unlimited. How fair is it that the NDP and the BC Liberals have a spending limit and yet third parties such as unions can outspend political parties by 2-1? The BCTF has approved millions of dollars in election spending at their last AGM, multiply that by the nine unions participating in this dishonest little campaign of non disclosure and you have a recipe for derailing the integrity of our electoral system.

The Supreme Court of Canada was clear in it's judgment on Canada versus Harper; spending limits foster confidence in the electoral system. Limits prevent candidates or parties from circumventing legislated spending limits through third party spending via special interest groups. These limits prevent wealthy donors from derailing the electoral system and it also prevents the escalation of overall advertising spending.

British Columbia is following the federal government's legislation that has passed judgement through the Supreme Court of Canada. Our BC legislation is entirely reasonable and within the law. Third parties can not be allowed to outspend political parties and hijack the electoral process. There must be limits!

"The primary mechanism by which the state promotes equality in the political discourse is through the electoral financing regime". Bill 42 levels the political playing field and fosters equality amongst all interested parties.

One final question; Why is BC's big labour against equality?

Thursday, May 15, 2008

Time in a capsule.


Way back in December 1949, a time capsule was sealed behind the cornerstone being laid during the construction of the Sunset Memorial Centre in South Vancouver.














Vancouver's own two-time welterweight boxing champion of the world, Jimmy McLarnin (left centre with Sunset President Stan Thomas) sealed the 11x5 inch monel-metal time capsule preserving the history of the Sunset Community Association at the laying of the cornerstone.

The vacuum sealed capsule contained the story of the building of the Sunset Memorial Centre, newspaper clippings, material on the life and styles of 1949, a movie on the centre and also a newsreel short of Bing Crosby's historic visit to Vancouver to raise the money to build Sunset called "Bing makes a bang in Vancouver".

After the decommissioning of the Sunset Memorial Centre, the time capsule was retrieved and donated to the City of Vancouver Archives for proper handling, opening and ultimately the storage of it's entire contents. If you are interested in viewing a short clip on the opening of the Sunset time capsule you can find a link here.



Scroll down the page to:


"Vancouver time capsule documents Bing's generosity and reminds us that he was once the King."

Wednesday, May 14, 2008

BC Liberals set to three-peat.

Most of you are aware that the next provincial election date is one year away, on May 12th 2009.

However, just a short seven years ago and you wouldn't have known when the next provincial election date was because BC didn't have fixed election dates prior to Gordon Campbell and the BC Liberals being elected in 2001.

Today elections can't be called to suit the political whims of the governing party. What a fantastic idea this has been! In fact many other provinces have followed BC's example and legislated their own fixed election dates, including Ontario, Newfoundland, New Brunswick and now Manitoba.

So looking ahead to the May 12th, 2009 BC provincial election, which party is going to win?

Based on the BC Liberal's vision, experience and their leadership, the answer is obvious; the BC Liberals will handily win the 2009 provincial election.

To follow up on my bold prediction, two new polls have come out showing the BC Liberals comfortably in front of the BC NDP, one year away from the provincial election. The Mustel Group poll has the BC Liberals at 49% with the BC NDP at 31% for a 18 point lead. An Ipsos Reid poll has the BC Liberals at 46% with the BC NDP at 34% for a 12 point lead.


Any way you add it up the BC Liberals and Premier Gordon Campbell are heading for a three-peat.

Tuesday, May 13, 2008

Unions still too political.

CUPE BC President Barry O'Neill holding hands with NDP Leader Carole James.

A new poll released by Angus Reid Strategies says, "49 per cent of respondents say unions have too much influence in Canadian life, while 25 per cent believe they have about the right amount of influence. The vast majority of respondents (72%) consider unions are too involved in political activities."

This is the second poll in 12 months asking the public if they feel unions are too politically involved. In July 2007 Angus Reid Strategies released a similar poll with similar results. You can read my comments from last summer here.

This poll is a fitting follow up to the BC Government's proposed legislation limiting third party advertising to $150,000 148 days prior to a provincial election. Why limit third party spending? Because unions are too involved in political activities. They shouldn't be spending millions and millions of dollars of their members hard earned union dues on political shenanigans.

As I said last year, unions should "stop spending the dues collected from their members on their political activities, public relations campaigns, and other activities not directly related to serving the needs of their members. Union members shouldn't be forced to fund union activities not specifically related to collective bargaining."