Grand Bargain

It is time for a Grand Bargain in this country.

The Leader of the Opposition should propose that he will accept carbon pricing if the Government agrees to replace income tax with consumption tax. The latter may take the form of a super HST like a VAT, A Personal Expenditure Tax, a BBQ tax or a Fun Tax, it does not matter. As long as the array of new, better or higher consumption taxes was enough to make up for most of the loss of revenue from leaving income taxes, it does not matter what form they would take.

It would mean the end of Capital Gains Taxes, Corporate Taxes and Personal Income Taxes. In other words, the end of the taxes that are best suited to impoverish and hobble our economy, innovation and success in any society. It would mean the beginning of relying on consumption taxes that are simpler, fairer, more efficient and easier to enforce and administer. It could be achieved by a gradual, incremental process that should not take longer than the life of one parliamentary term.

The benefits of such an approach backed up by guarantees of certainty and fairness in energy projects and a new super fund to clean up real pollution in Canada would  be manifest. First, the nation would become a magnet for investment and capital such as is not seen except in places like Singapore and Hong Kong. We would be overnight more competitive than the US. Any restriction on consumer activity would likely be lessened by the return of almost a third of most people's money into their pockets.In a word: BOOM!

On the other side of the social ledger, a consumption society would tax the things that hurt the environment the most - pollution, waste, unrecyclable goods, etc. This would make us greener. The wealth from the tax reform would make it easier for us to clean our environment. Not only do we get less of something - pollution - when we tax it more, but as we get more revenue from taxing our economic growers in business less, we will be better able to eliminate our remaining environmental atrocities in our rivers, our harbours and reserves with the Super Fund.

Politically, it would be an opportunity for all of the federalist parties to unite in a great reform. Everyone wins! However, if the other parties do not cooperate, the Conservative Party can build around this Grand Bargain concept as the pillar for a new national agenda oven-ready for the next election which could come sooner than later. It certainly would see Scheer begin to build a much needed image as a bold and imaginative leader of wisdom.

In turn, we will defeat the forces of Separatism by smothering the grievances of Quebec and the West with prosperity and fairness. Above all, we can comply with the draconian requirements of the Paris Accord while not only maintaining our competitive position in the World but greatly enhancing it. We can be a model for environmental custodianship and economic dynamism for the World at the same time. Together with other changes to our economy chiefly via deregulation and free trade inside and out, we can unify Canada in peace and prosperity.