Roundup: Carbon tax opportunism

The latest round of carbon tax drama has the Conservatives drunk with glee, as Manitoba premier Brian Pallister’s decision to scrap his own carbon tax plans has them thinking that they now have a national momentum against carbon taxes. It’s not likely to be that simple – and they may find out that it may blow up in their faces. Pallister says he changed his mind about it after meeting with Trudeau, and found Trudeau intransigent on letting Manitoba keep their tax at a flat $25/tonne when everyone’s else was ramping up to $50/tonne, which sounds like a no-brainer – you want a consistent carbon price across the country to prevent leakage and to keep a level playing field. (Pallister also claims that their plan was so comprehensive, but in interviews would point to things like remediating mines and recycling programmes, which are not about addressing climate change, and his deliberate misinformation should be called out as such). But it also smacks of opportunism, given that small-c conservatives across the country are taking the election of Doug Ford in Ontario as some sign that there is an uprising against carbon taxes when that was very likely not the cause of his election, but rather it was the impetus for change from the province’s tired Liberal government. Overreading Ford’s “mandate,” if we’re going to use that word, is dangerous for them to do. Meanwhile, Ford was yukking it up with Saskatchewan premier Scott Moe in their insulting the federal carbon tax, each believing their mutual court challenges are going to go somewhere (they’re likely not), and Ford would say things like a carbon tax is the worst thing in the world and will do nothing for the environment – complete falsehoods, and all he has to do is look at BC to show the complete opposite.

The federal government, meanwhile, hasn’t been terribly eloquent in their response, on the one hand decrying Pallister’s “flip flop” and worrying that conservatives want pollution to be free, while also pointing out that when the federal backstop comes in, people will be getting cheques in the mail. And that’s going to be the Achilles heel of the federal Conservatives’ belief that the country is going to rise up against carbon taxes. They keep pushing the narrative that it’s a tax grab to feed the Liberals’ “out of control spending” when it’s in the enabling legislation for the carbon tax that the funds will be rebated. But the government hasn’t been eloquent – and has been barely competent – when it comes to any kind of messaging on this file, and that’s the part that will probably hurt them the most, and it’ll be a self-inflicted wound, which makes you just shake your head watching it all go down.

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Roundup: Moe’s carbon bafflegab

Saskatchewan premier Scott Moe (or his staff) penned an op-ed in the National Post yesterday, to explain why he thinks Canadians are opposed to the federal government’s planned carbon tax. The reasons, however, are…not convincing. Nor are his counter-claims about what the alternatives are. And to be fair, almost nobody likes taxes, which is why leaders like Moe have been casting any kind of carbon price in as negative a light as possible in order to turn public sentiment against them. And we can’t ignore that most Canadians want to fight climate change like they want a pony – they say they want to do it, but don’t actually want to undertake any of the responsibility that goes with it.

As for Moe’s arguments, he decries the carbon price as a “one-size-fits-all” approach, which is bogus off the start. The price does not indicate the mechanism by which it’s implemented, whether that’s cap-and-trade or a tax, and how those systems are set up and administered can vary greatly, particularly in how the revenues are recycled. That’s why the federal government gave provinces the space to design a system that fits their particular circumstances best. So right off the start, Moe is being intellectually dishonest in his argument. And as for the stated goal of reducing emissions, a carbon price is not only about reducing emissions – it’s about giving a market signal so that major emitters can drive innovation to reduce their emissions and avoid paying it (you know, something a fiscal conservative would recognise, were Moe actually one and not a populist goof), and it ensures that everyday consumers make choices to reduce their emissions. If you see people lining up at gas stations when the price drops a few cents, imagine what price indicators mean when it comes to other behaviours.

Moe keeps pointing to his province’s investment in carbon capture and storage, which has not yet proven itself cost-effective as a technology, but ironically would be more cost-effective if there was a carbon price that would help to better monetize its value. He talks about designing an offset system that would recognise carbon sinks in agriculture, but again, having a price allows this recognition to be better tracked and monetized, which again, provides incentives. You’d think this would be elementary stuff to someone who purports to be a fiscal conservative that believes in the free market. But that’s not what Moe is (nor is Doug Ford or Andrew Scheer for that matter), and they need to justify how they’re rejecting actual fiscal conservative measures.

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Roundup: Judging Question Period the Toronto Star way

The Toronto Star released a package of stories yesterday on Question Period, and because this is the way we do journalism these days, it was full of data analysis that looks shiny, and hey, they got some investigative reporters to count questions and responses. Absent from that? A hell of a lot of context. So while you got some backbenchers who don’t participate to gripe about it being scripted (which it is), and some counting up of the talking points (without any context as to why these developed), or a surface-level look at the political theatre of it all (again, absent a lot of context or history, or bigger-picture look at the ways in which the messaging has changed and how it is currently being used to gather social media clips). It’s inch-deep stuff that, for someone who covers QP every single day, is mighty disappointing. (Additional point – most of the writers of these pieces have not attended QP, which is a problem because watching it from your desk in Toronto is not the same thing as being there in person. At all).

What is the most disappointing of all, however, is their “Question Period fact check” piece, which takes a sampling of questions and answers, and assesses the veracity of the questions being posited and the responses. Why it’s a problem is because they fell into the problem of how questions are framed – surface truths that are stripped of context to say something that it doesn’t. An example is when the Conservatives railed that the PBO said that carbon taxes would take $10 billion out of the economy. Which isn’t actually what he said – he said that it would take $10 billion out of the economy if the revenues weren’t recycled through tax cuts or other measures but were just given directly back to taxpayers. That’s a whopping difference in the message, because using only the $10 billion figure is a disingenuous attack line. And what did the “fact checkers” rate it? “True!” even though it wasn’t actually. And the piece was full of problematic fact-checks like that, which makes it infuriating for someone who actually pays attention to what is being said and how. So while everyone pats themselves on the back for the piece, I’m really unimpressed with the package as a whole.

Equalisation reform

Saskatchewan Premier Scott Moe released his plan to reform equalisation yesterday and it’s…not equalisation. It’s like he doesn’t get the concept at all. Which at this point should not surprise anyone, because it’s been so badly reported on for decades and has been the tool of demagogues to bash Quebec rather than understanding how the system actually works – paid for by federal income tax out of general revenues to a province that doesn’t have the fiscal capacity to offer comparable services. It’s not one province writing a cheque to another one. For provinces that pay into it more than they get out, it’s because they have high incomes, thus they pay more income tax. It’s not that mysterious (and yet most reporters simply write “it’s complicated” and leave it at that). And Quebec has structural issues related to their fiscal capacity (and yes, their tax rates are already high relative to other provinces) but the per capita equalization they receive is actually low, not that the shock-and-awe figure of the total amount isn’t constantly being weaponized.

https://twitter.com/acoyne/status/1009498701151158272

And what does Moe suggest? Basically taking money from Quebec’s share and giving it to all provinces whether they need it or not. It’s bullshit that fortunately a number of economists called out – not that it’ll matter, because the audience that Moe is speaking to dismisses what economists have to say. Sigh.

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