Sunday, March 11, 2007

Economists from Canadian bank support global warming tax

Canadian economists from one of the largest banks have come out in support of taxing industries and consumers who contribute to global warming. In order to make real progress on cutting emissions, they say, the government should attach a cost to pollution.

In a report released a few days ago by the TD Bank, the economists argued that as long as it is cheap to pollute, people and businesses will go on polluting. But a policy that includes emissions regulations, taxes, subsidies and a trading system for emissions credits mitigates the impact that the taxes would have on the Canadian economy. From the Toronto Star:

TD's chief economist Don Drummond said he's found it "bizarre" that the government and the business community haven't engaged in a more thorough public debate over such a major economic issue.

Any mention of a carbon tax – or taxation in general – is a taboo among many politicians. Liberal Leader St├ęphane Dion raised the possibility last week, and then backtracked a day later.

The crux of the problem is that clean air is considered a free commodity. Simply legislating emissions cuts, Drummond says, only masks this problem. But he says taxing those who actually pollute creates an incentive to change behaviour.

The TD Bank plan supports cutting taxes in other areas or to finance subsidies to further clean up the environment.

1 comment:

Theresa said...

Just to let you know that Not only does the TD Bank supports global warming tax, currently they are also running till August 3 2007

http://canadianfreestuff.com/2007/06/05/switch-to-td-canada-trust-bank-and-get-a-free-ipod/