Treat carbon tax like a ‘sin’ tax
Congratulations to the Prince Edward Island legislature for approving the bill that calls for a 14-per-cent reduction in carbon emissions by 2030. Those who are keeping abreast of the science realize that if we are acting alone, Islanders will not have much impact on the global situation. However, if we proceed wisely in meeting this goal, we can enhance our economic and social prosperity and rehabilitate our Island environment while being leaders in solution-based actions.
As we transition to action, I expect the debate on a carbon tax will continue to be a controversial subject. During the recent election campaign, all four parties made valid points. The Greens insisted something more must be done. In their view, leaving it to the marketplace with a revenue neutral tax was the best solution. The Liberals said we are already doing a lot. The NDP focussed on a more comprehensive mandate of government-run programs and the Progressive Conservatives took a firm stand on opposing a carbon tax which, in their opinion, would disproportionately hurt low income and rural Islanders. While the debate dragged on, our fossil fuel consumption rose, resulting in record levels of greenhouse gas emissions.
We have finally moved beyond debating the reality of our impact on climate change. We are now in a crisis that can, quite literally, result in climate collapse. No credible argument remains to deny taking immediate and substantive actions to reduce our carbon footprint.
So, if carbon pricing is going to be on the table, I propose that we treat it like the “sin” taxes that we placed on tobacco and alcohol, which may make it more palatable and equitable to those who are opposed to a carbon tax. Rather than taxing the rural Islanders who have no option but to rely on their vehicles for transportation, let’s tax the non-essential use of internal combustion engines. I am referring to the Sea-Doos and Ski-Doos and pleasure watercraft that line our cities’ harbours.
Let’s even tax lawn mowers, which are far more polluting than cars. I am also talking about the 100 plus cruise ships that enter our harbours, each one of which consumes the equivalent amount of fuel as one million cars, and I am talking about private airplanes. These are all burning carbon for convenience and entertainment at the expense of our planet. We can do this by taxing the pumps at harbours and airports and taxing those who are filling cans at the gas stations. Some folks may say that this targeted sin fuel tax is not enough. However, if we are taxing the “sinful” uses of fossil fuels, then it would eliminate the need to make the tax revenue neutral. Instead, government could allocate this revenue to programs that conserve energy and also provide incentives for the adoption of home-based or publicly-owned renewable energy systems.