Novel defence of the carbon tax

Dear editor:

Taxation increases economic activities and supports national money circulation.

The addition of the new graduated carbon tax increases money circulation and consumerism. Just as new industry forces additional money circulation.

Since the carbon tax increases the price of nearly all products and services, low income earners are squeezed harder. However, by higher earners paying more carbon tax, more people are employed.

Opposite examples: The intended closure of the Oshawa GM plant will reduce money circulation and lower consumerism for thousands. Likewise lowering taxation lowers economic activities and lowers the fiscal ability to borrow billions from charter banks; thus reducing the volume and velocity money circulation.

Since the federal government is nearly always in a fiscal deficit that means the federal government is spending more money than it collects as taxation. Governments do not keep one dollar out of public circulation.

Individuals and corporations can only be temporary custodians of wealth, money, property, intellectual and physical abilities. There is a public lien/claim of about 50 per cent on all Canadian money.

Canadian money circulation provides education health care, high living standards and enviable humanitarianism for Canadians.

However, the current economic system does accommodate climate change advocates.

Bruce Alton McGillis Penticton