Taxation and the middle class

[jeffster]

The poorer the person, and therefore the less gasoline etc. they are likely to be able to afford, the less they pay in tax; but they still get the same cash grant so they come out ahead. Note that this is way better than rations and other clumsy mechanisms because it leaves the choice of exactly how much to consume in the hands of the individual.

The problem with the rebate system, and the carbon tax, is that it *does* affect poor people more. And here's why: they get a larger tax return -- and this occurs only once a year. With that money, they're not saving it to pay for carbon taxes and using the rest for whatever. They're spending that money right away, perhaps on thing they don't need, like a larger screen TV. They don't save it, though. So what winds up happening is that these people are more broke 11 months out of 12, and in that 12th month, they behave like someone with money.

I think it would have been better if the rebate was monthly, or perhaps quarterly with the GST payment.

As for the ones that are poor, they still have heat their homes, and pay for transportation, and anything related to transportation, and therefore are the least likely to afford it, as I truly don't believe for a microsecond that these carbon taxes are revenue neutral once everything is factored in. Not only that, the Liberals have already decided to reduce the amount that residents in provinces would be getting back from their initial promise.

What I would prefer to see: higher taxes on large vehicles at point of sale, surcharges on destinies where flights/cruise ships are used. Getting meaningful carbon tax dollars on discretionary spending, not on essential spending. If you can afford a $10,000 cruise every year, you can afford the taxes, though I do see how this would be next to impossible to implement.