Never in the history of taxation has a levy been enthusiastically welcomed by the public with open arms.
But a nation, province or municipality cannot sustain remotely acceptable services without taxes.
The lower the tax rates, the less revenue the government generates.
The less revenue the government generates, the less funding is available for everything from libraries, fire halls and highways to senior centres, schools and hospitals.
So bemoaning taxes — despite Alberta still being among the lowest taxed provinces in the country — while demanding government spend more to support public institutions and non-profit groups seems akin to a confusing contradiction in terms.
The carbon tax, like all other taxes before it, has seen its share of resistance, controversy and political posturing from all sides.
And there frankly are — without question — legitimate concerns regarding the levy’s impacts on struggling non-profit groups and even small towns operating on their own limited and often stretched-thin tax base.
If private citizens who do not rake in massive salaries get a rebate on the carbon tax, should non-profit organizations and perhaps even municipalities that just barely squeak by not be outright exempt from the tax, or at the very least eligible for rebates as well?
However, that being said, there are also some worthwhile considerations and commendable intents behind the carbon tax, flawed as the levy might be in its current form.
Grant funds and government programs have made it possible for successful applicants to offset substantial costs of upgrading facilities, businesses and homes to improve energy efficiencies, which in turn reduces bills and environmental footprints. Improvements that homeowners, businesses and non-profit organizations might not previously have been able to afford are now within their reach.
A government spokesperson with the Alberta Climate Change Office recently said that in Sundre alone, more than 100 homes, businesses, non-profits and institutions are participating in — and benefiting from — Energy Efficiency Alberta programs.
How is any of this bad?
Thing is, taxes are always assured to stir up a storm of controversy. That is as inevitably predictable as the tides. The former Conservative Brian Mulroney government’s GST — which younger Canadians would not even remember living without — created a monumental torrent of public outrage at the time it was introduced in 1991. And even to this day, so much as whispering the introduction of a provincial sales tax in Alberta is assured political suicide.
There is a balance between taxes being too low and too high, as well as efficiently allocating revenues for the greatest effect while reducing waste. Finding that balance is the hard part, and the source of almost all modern political divides.
So sure, levies such as the carbon tax are far from perfect.
That is why they should always be critically reviewed and improved to reduce negative impacts and maximize their positive potential. But we should resist the knee-jerk reaction to toss out the baby with the bathwater.
