Pay the Rich Greenwashing
In addition to the housing handouts to the rich, the Federal Budget 2024 provides $20.9 billion in ways to enrich the imperialists under the guise of "greening the economy." The budget includes a mix of investment tax credits and cash handouts for the rich to make a transition to less intensive carbon energy. It provides a "clean" electricity tax credit worth $6.3 billion over six years and one for hydrogen projects worth $5.6 billion. Another $4.5 billion investment credit is included for those producing electric vehicles and batteries, and processing critical minerals.
Carbon Tax
The carbon tax, also known as a price on carbon, is a price levied on emissions from carbon fuel sources, be it from coal, oil, natural gas or gasoline.
Carbon taxes along with cap-and-trade and marketing of carbon credits emerge from the law of limitations and the need for governments to "do something" to address the broad concern across civil society about climate change. Within the imperialist system, "doing something" about climate change must not restrict or affect paying the rich, the sanctity of private property and the aim of maximum profit and maintaining control over competing interests and sources of raw materials and cheap labour. The burden of "doing something" is passed onto the people in one way or another.
Pundits have twisted their minds to come up with these schemes that avoid directly stepping on the right of private property to rule and be enriched but rather make the people pay for the "doing something." In this way the imperialists are not restricted in their pursuit of maximum profit nor unduly affected by competitors yet think they can appear to be concerned that something is being done to address climate change.
The carbon tax is a standard price per tonne of CO2-equivalent emissions generated. The carbon tax came into effect in Canada at $20 per tonne in 2019. It has steadily climbed in the years since and was scheduled to rise from $65 per tonne to $80 on April 1. It is scheduled to go up another $15 each year until 2030, when it reaches $170 a tonne. At this rate, by 2030, the price on carbon would add nearly 40 cents per litre of gasoline at the pump.
The specific carbon levy varies based on how much carbon dioxide a fuel releases when burned. Coal, for example, releases more carbon pollution than natural gas to produce the same amount of energy, so the tax is higher on coal than natural gas.
The carbon tax affects 20 different products with prices according to the amount of carbon emissions. These differences require extensive calculations and reporting of the tax as shown in this government graph.
The amount of carbon tax a buyer pays depends on the fuel source used -- the more emissions the fuel produces, the more tax is to be paid. The carbon tax on home heating oil, for instance, works out to $0.1738 per litre. At the present time for heating oil, the carbon tax adds roughly nine per cent to the total bill.
Governments have devised two systems for pricing carbon in Canada. Quebec and certain provinces have their own system while the federal government has a compatible one. The fuel charge is a consumer carbon tax on the gasoline and other carbon fuels used to heat a house and power a vehicle for example. Another system is applied to industrial users.
The carbon tax on industrial users is passed on to consumer commodities. Any tax on means of production increases the market price to the buyer downstream unless the company involved reduces its profit by the amount of the tax and keeps the market price for the commodity the same. This would be exceptional because the carbon tax applies to all and therefore does not affect competition as all can raise the price accordingly.
For buyers of means of consumption, the carbon tax has already been buried and transferred within the amount regardless of the commodity. Also, the price of distribution of goods will be affected and given the increase in delivery of goods using the Internet the overall effect on consumer market prices is significant.
Canada calls its program "revenue neutral" because all proceeds are returned to the province where they were collected. The government contends that 90 per cent of carbon tax revenues are returned to households through a rebate program. The other 10 per cent is said to be directed to programs to help businesses, schools, municipalities and other grant recipients reduce their carbon fuel consumption.
For individuals, the amount of tax paid and rebate received depends on multiple factors, which affects the neutrality of the tax. According to a Statistics Canada model, 94% of households with incomes below $50,000 received rebates that exceeded their carbon-tax costs in 2023. The report appears to use only the carbon tax on the means of consumption and does not appear to take into account the carbon tax price increase that may be buried or transferred within the commodity as it moves through the economy. The chart of Canada Carbon Rebate amounts for 2024-25 can be viewed here.
Even taking these figures at face value, saying the tax is revenue neutral is not factually correct because a large bureaucracy is needed to calculate and handle the tax and rebates. The totality of these measures and the massive subsidies to the supranational enterprises to make a change to less carbon use reflects the jumping through hoops, irrationality and fraud necessary to present that something is being done about climate change but without restricting the right of private property and imperialist owners to exploit the working people and Mother Earth, and do whatever it takes to impose control over what belongs to others abroad.
The official opponents of the carbon tax decry it as just another tax grab. They do not present an alternative to deal with climate change directly that would affect those who own and control the economy. However, the crisis of climate change must be addressed and that means the people must force those who own and control the economy to deal with the problem directly and concretely through restrictions on their actions, profits and interference and control over others abroad. Fraudulent means that pay the rich are not intended to even marginally mitigate the climate crisis.
Economists' Open Letter in Support of the Carbon Tax
In support of the Liberal government's carbon tax, a collection of economists from across Canada have penned an open letter whose main feature is their refusal to confront the situation of climate change with objectivity of consideration. They are stuck in a world which is incapable of sorting out any problem because it ignores the lack of control of the people over the decisions which affect their lives. They ignore that it is the people's striving to humanize the social and natural environment which is the driving force for change which favours them and the natural environment, not the capitalists striving for power, control and maximum profits.
In
the face of the private interests of an oligarchy that owns and
controls the main means of the economy's productive forces, including
the human work force, the economists' outlook and reference point
constrain them from exposing the carbon tax as a climate change fraud
and instead recognize
the necessity for change. They refuse to see or even acknowledge the
possibilities of substantive action to combat climate change. Instead
they confine themselves to accepting and even lauding the carbon tax as
necessary. This is despite the fact that the carbon tax essentially
forces the people to
pay for the sins of those in ownership and control of the economy and
does next to nothing in the battle against climate change.
From the imperialist vantage point of the economists, used to draft the federal budget and by the Loyal Opposition, no alternative is possible, certainly not an alternative that violates the authority based on "right of private ownership" of the means of production. This includes their "right to maximum profit" to increase their already bloated personal fortunes and power.
From the vantage point of this collection of economists, they denounce opposition to the carbon tax as opposing a small step in combating human-caused climate change. Constrained within their reference point their argument amounts to no more than "the tax is better than nothing." They plead that at the least the make-the-people-pay carbon tax has a minor effect on reducing carbon emissions within an economy that in fact requires serious change to its aim, form, content and authority. They block the acknowledgment and consciousness that with bold action in opposition to the "powers that be" much could be done with a new aim and direction for the economy to reverse the damaging consequences of an economy that now serves destructive wars and striving for power and control by contending global oligarchs, not the people and Mother Earth.
The climate crisis has emerged as an objective problem that cannot be avoided. The owners in control of the economy and official politics have no choice but to deal with the problem within the law of limitations, which for them and their anti-people outlook means forcing the people to pay with individual taxes, cuts to social programs, a lower standard of living, recurring economic crises within an insatiable war economy of pay-the-rich schemes and endless wars.
The
social wealth needed to make the necessary changes to lessen carbon
emissions is enormous. The technical and scientific developments of the
human productive forces are objective and are so massive that they are
out of the control of the oligarchs, with the climate crisis evidence
of this.
What the oligarchs cannot control, they act to destroy, using wars of
destruction of human productive power, as seen in Palestine, Libya,
Iraq and elsewhere. Driven by their need to protect their private
interests in an economy that is socialized and interconnected globally,
they cannot provide
solutions -- which requires politically empowering the people to govern
and decide.
Contrary to the reality of a socialized economy, the oligarchs want any greening of the economy to be done for their narrow benefit with their personal wealth and power expanded not diminished. This insistence requires the people to pay for any changes including using the public treasury for pay-the-rich schemes. Such programs on this front are already well underway with enormous public funds made available to the supranational rich to change to renewable electrical energy production, distribution and consumer goods, as well as guarantees for cheap infrastructure, supply lines and increased means of waging war.
The billions in public subsidies to the privately-owned and controlled supranational vehicle and battery cartels have already become legend. Also, new legislation has already been introduced to make any disruption to trade and supply lines a criminal offence. This will effectively criminalize workers and their organized defence of their rights as well as those protesting war, destruction of Mother Earth and the violation of rights including the rights of Indigenous Peoples. Laws to criminalize disruption of trade are designed to make unions and their actions in defence of the working class illegal and to criminalize political activity that does not fall into a narrow category deemed acceptable by the global rich and their representatives holding state power.
For
the carbon tax economists, a companion to the pay-the-rich schemes is
to make the people pay with increased individual taxation and a
degrading of social programs and the general standard of living. The
social wealth the working people produce is to continue to be
constrained within the aim
of paying the rich who own and control the main parts of the economy,
public subsidies to them and for government expenditures to sustain the
war economy. Within this context, the oligarchs in control seek to
eliminate all opposition to their private ownership, control and right
to deprive whether
it comes from people defending their rights or competitors.
The oligarchs in control seek to eliminate the opposition of working people and any constraints on the expansion of their business affairs throughout the world. They relentlessly want more regions to come under their control, markets to exploit, resources to seize and cheap capacity to work to buy. This requires enormous expenditures for a war economy to be in a constant state of readiness and growth. The social wealth to sustain their operations at home and abroad demands that the people must pay with such schemes as the carbon tax, cuts to social programs, price inflation and a lower standard of living.
The oligarchs refuse to give up their ownership and control of the economy and politics and change the direction of the economy to a pro-social one and allow a new authority of the people to take control. Such a change would mean using the social product and the new value workers produce not for maximum private gain and war but to serve the people, develop the economy and humanize the social and natural environment.
The open letter praising the carbon tax is not penned by economists in the scientific sense. They are spokespersons for the ruling elite who own and control the economy. The letter is disinformation which does not take up climate change in an all-sided serious manner. It just adds fodder to the phony pro or con debate over the carbon tax to divert people away from the work required to humanize the natural and social environment.
Why these economists would write something praising the carbon tax makes one think that perhaps they are the ones who came up with the idea in the first place. The idea is stuck firmly in the magical marketplace and its invisible hand to solve all problems. Even statistics are presented of a reduction in emissions in the classic liberal way, which is meant to fool the people into believing those in control are dealing with the problem. Strip people of their purchasing power to reduce the carbon footprint. Oh yes, making the people pay will solve the problem, just like shutting down small businesses during the pandemic was supposed to save the people while letting big business expand and take over more of the economy as bankruptcies exploded. They still refuse to hold to account their allies who own the private nursing homes and let seniors die en masse during the pandemic!
The
richest people on the planet are consolidating their wealth and power
and control over the economy and peoples of the world and intensifying
their war fever. The carbon emissions from the U.S./Zionist genocidal
war against Palestinians and the U.S. proxy war against Russia using
Ukrainians as
fodder are pouring more carbon into the atmosphere than the carbon tax
can ever hope to eliminate. The war economy and the profiteers in the
military industrial complex are filling their pockets through profiting
in part from public money raised from the carbon tax and siphoned away
from social
programs. Are we to believe war is good for the environment? Are they
going to have electric powered missiles and bombers with solar panels
on top and claim they are saving the planet from climate change?
Greenwashing through and through along with their anti-people carbon
tax. The level of
hypocrisy and double speak is astounding.
Whether to tax this or that and then claim it will solve the problem of climate change is yet another form of greenwashing and shows how the uber rich in control have no intention to deal directly with the problem, which would impinge on their power and profits. The aim of big business to retain and expand their power, control and profits is in contradiction with any claims of being socially and environmentally responsible. The carbon tax is just more fleecing the people using high-sounding words. These are the same oligarchs in control who oppose tooth and nail making Canada a zone for peace and instead are ramping up war spending, war preparations, and war itself all over the globe with full integration into the U.S. empire's reckless and destructive adventures.
No authority of the people exists within the current political structures to ensure science and the human factor are put at the forefront when it comes to economic development. Instead, the narrow private interests of contending global oligarchs impacts how science and the public treasury are used and for what purposes. Protecting their interests necessarily means continuing wars, destruction of human productive forces, economic upheavals, the growing gap between rich and poor and worldwide destruction of the social and natural environment.
Talk and praise of a carbon tax and using opposition to it to promote narrow political ambitions are out of touch and aloof. The so-called carbon tax debate shows how an official agenda is set and promoted from private offices, boardrooms and public relations companies and then becomes an issue in the mass media to promote this or that political party and leader while diverting the people from how to deal with the social and natural problems directly. Dealing seriously with social and natural problems entails stepping on the toes of those in control and means stepping up current efforts by the people speaking out in their own name for rights and working to empower themselves to change the aim and direction of the economy.
Within
the constraints of the imperialist outlook and reference point, the
economists have penned their letter to support the federal government's
make-the-people-pay carbon tax. Their outlook blinds them to the
possibilities of a change to a pro-social aim and direction for the
economy. The
objective conditions demand a change in the authority in control to
bring it into conformity with the socialized objective condition. It
can be done, it must be done!
A pox on both the pro and con carbon tax advocates whether they call themselves politicians, economists or whatever. They are propagandists for the status quo and those in control who possess the power to deprive. Time for a change to the New with the empowered people in control of the economy and state with an anti-war government whose aim is to serve the people and Mother Earth and humanize the social and natural environment.
Dissecting the Economists' Open Letter
Extracts from the letter are in quotation marks accompanied by comments.
"As economists from across Canada, we are concerned about the significant threats from climate change. We encourage governments to use economically "sensible" policies to reduce emissions at a low cost, address Canadians' affordability concerns, maintain business competitiveness, and support Canada's transition to a low-carbon economy. Canada's carbon-pricing policies do all those things."
"As economists from across Canada," they are obligated to be scientific in their field and presentations, and from an analysis find a way forward for the economy to develop in the service of humanity without crises or damaging Mother Earth. The adjective sensible is a subjective term. It reflects the current mania of cartel party politicians who speak of "common sense" policies, which can hold any meaning according to particular prejudices and outlook.
Private interests own and control the economy. They want "sensible policies" that serve their private interests and do not harm them or impede their "business competitiveness." Their private interests are bound up with particular enterprises, sectors, investments or ways of doing business. They view the economy, its change and problems from the vantage point of their own particular private business and investments, not from what serves the economy, its development, people or Mother Earth.
Other parts of the economy, which is part of the globalized economy, are most often viewed as competitors to defeat, take advantage of, or destroy. What makes sense to them is the requirement that sensible policies, according to their vantage point, do not damage their narrow private interests. If certain changes are forced upon them, for example through the development of the productive forces, and result in an increase to their prices of production, they demand government compensation through pay-the-rich schemes and other "sensible" policies.
Resistance of the Rich and Their Political Representatives to the Socialization of the Relations of Production
Those who own and control the economy demand the public treasury support their private interests with subsidies and other factors of production such as cheap educated and healthy workers and infrastructure. They believe their own survival as wealthy and privileged businesspeople depends on assistance from public resources, otherwise they will lose their particular economic grip over the economy. Their greatest fear, which is expressed in practice by their political representatives, is that relations of production will become socialized in conformity with the already socialized material productive forces. In other words, they dread the prospect that the economy will complete its socialization and come under the control and political authority of those who produce the social product, the working class and people. With socialization of relations of production, working people will view the economy as a single sheet of steel within the necessity not to damage Mother Earth. In so doing, they will unleash the full potential of a modern socialized economy in the service of all humanity, not just a select few.
To avoid the progress of the economy and society to the New during this transition to a lower carbon economy and increased productivity, the current owners of the means of production and distribution demand that public institutions uphold their narrow private interests. Without public financial support and cheap infrastructure and a political authority defending their private interests, they fear losing their ownership and control of the parts of the economy they now possess. Such a state of affairs is unthinkable for them and their outlook, which is rooted in private ownership of an economy that has become socialized in all aspects except in who owns and decides and controls its direction and how the social product and wealth is distributed and invested.
In the face of the challenges of the current transition to a lower carbon economy, AI and robotic productivity and not to damage the private interests that own the economy, the economists who penned the open letter want "sensible policies" to reduce carbon emissions "at a low cost" that "address Canadians' affordability concerns" and "maintain business competitiveness." They assert, "Canada's carbon-pricing policies do all those things."
"Sensible Policies"
"Sensible policies" are to be taken at face value as sensible and irrefutable according to the particular prejudices and reference point of those who consider the policies sensible. A certain irrationality and faith in the unknown are needed to overcome the lack of science and objectivity of consideration. Facts are chosen to prove how sensible the carbon tax is. For example, a general reduction of 8 per cent in carbon emissions in Canada since 2019 is attributed to the carbon tax. This proves the sensibleness of a carbon tax along with the fact that for private interests the carbon tax comes at a lower cost to their private businesses than more direct measures. The tax is passed on to the consumer and in some measure to the public treasury through rebates. The pandemic shutdown slowing the economy during much of the period in question is ignored.
Not just the carbon tax is considered "sensible" in reducing carbon emissions. Governments have taken other measures to support owners of supranational enterprises and their global domination and expansion. Massive sums of public money are flowing to Volkswagen, Northvolt, General Motors, Stellantis and other vehicle, battery and energy producers to lower their prices of production and boost their rates of profit. These public handouts likewise are considered "sensible" and good for "business competitiveness," albeit at the expense of federal, Quebec and Ontario government treasuries and their ability to invest in social programs. Paying the rich within a war economy has become the mark of sensible representatives in government, the monopoly-controlled mass media and official economists.
This article was published in
Volume 54 Number 29 - April 2024
Article Link:
https://cpcml.ca/Tmlm2024/Articles/MS54295.HTM
Website: www.cpcml.ca Email: editor@cpcml.ca