LASER TALK: Why we want 100% revenue neutrality

LASER TALK: Why we want 100% revenue neutrality

1.  A 100 percent rebate ensures that most Canadian households will come out equal or ahead regarding the increase in energy costs.  This calculation takes into account not just direct energy costs, but the pass-through businesses will add to the cost of their products.

2. Members of Parliament who feel pressured to not increase taxes can still vote the right way.

3.  If while steadily raising the price of carbon-based fuels we eliminate all energy subsidies, we allow the market to go to work without the government picking winners and losers. Venture capitalists, banks, and entrepreneurs seeing a predictable price signal will create breakthroughs in innovation that in some cases are unimaginable at this point.  A carbon fee is the most efficient and direct way to send a meaningful price signal to the markets, better than subsidies but also better than alternatives such as government regulations or cap and trade.

4.  Asking citizens to voluntarily curtail their use of fossil fuels when others may not choose to do so can be demoralizing and ineffective. To maintain public support of the price we will ultimately need to stabilize CO2 emissions, and citizens will need to receive a significant dividend.


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