Elections 2008 - environment

Written - 13 September, 2008

If economics are at the top of the agenda for this election, environmental issues are a close second. Interestingly, it seems that most parties, with a notable exception, have concluded that environment and economics are not mutually exclusive. Each of these parties has discussed the idea of taxing the use or extraction of our resources. This transition in popular politics reflects the interests of academics, non-government organizations and most importantly, the voice of a younger generation genuinely concerned with the future.

A long-term vision is required now more than ever as the expectations placed on future Canadians are phenomenal. Given the current situation, it is difficult to foresee a comfortable lifestyle characterized by the affluence of today continuing in the future. Government and industry have created a huge pension program for baby boomers set to retire in the next 10 years and pension funds require continual input. However, these funds are losing value because our economy is based fundamentally on oil – the most volatile commodity and a dwindling natural resource.

By 2015 there will be more retired people than people under the age of 15. By 2031, the population over the age of 65 is expected to be 24% of the total population, nearly double what it is today. If the tax system continues to depend on personal income taxes and offloading government expenses to taxpayers continues, workers will be too overburdened to invest in themselves, as they pay to maintain social infrastructures. This is not a youth issue, but should be a common concern. With no pension stability the hard work of the boomers could amount to poverty in their retirement.

So, even if we suddenly discover a gazillion barrels of oil (highly unlikely), the tax system must be shifted to other areas of the economy or workers will be unable to maintain the Canadian system in less than 25 years time. Therefore, when Mr. Harper and his cronies say that it is irresponsible to begin shifting taxes to carbon or resource extraction in an era of economic decline, they are not thinking beyond the next fiscal year. And lets not forget that Harper was an oil executive … though he doesn’t bring that up too often.

Ultimately, the other parties green tax plans are similar with some differences in the detail. While shifting taxes to resource extraction is risky, it is a sure failure to stick with the status quo.