18 August 2005

A truly Canadian policy on gas prices

Surely this is the End Time.

Federal Conservative leader Stephen Harper, some provincial premiers and, in Newfoundland and Labrador, Ersatz Opposition Leader Gerry Reid are all calling for the same thing:

lower taxes on gasoline.

If the Book of Revelation missed this alignment of political forces maybe there is a Nostradamus quatrain that foretells the time when a bunch of guys all come up with the same unsound policy suggestion at the same time all to do nothing but gain a few points in a public opinion poll.

The only - and I emphasize only - reason anyone is suggesting lowering taxes on gasoline is in response to public outcries about recent price increases. It is as shallow a political motive as we have seen in this country for advancing an idea since a handful of people convinced Allan Rock that if I have a gun in my house my wife was infinitely more likely to get shot if we had a minor disagreement. If that wasn't convincing enough, they told us that we could use a gun registry to fight gang violence in Toronto. Neither Rock nor any of the Illogical Brigade can be seen these days in the Jane/Finch corridor explaining why their claims haven't proven correct.

Just because people cry out for something doesn't mean it is a good idea.

Sometimes people manage to convince politicians of ideas that lack merit. Here we have a case where politicians themselves are coming up bonehead notions.

Apparently, not one of these politicians notices that the price increases are a direct result of international concerns about oil supplies that will likely drop as concerns are allayed. No one notices that high prices for gasoline may actually lead consumers to make smart choices about their consumption for a change. That would be good for the environment, among other things.

No one seems to notice that the millions of dollars the federal government will transfer to the nation's cities come from gasoline taxes.

In the world of public policy there are only a handful of good reasons to drop a tax or eliminate it.

- Cut it or eliminate if the tax is hindering business growth.
- Cut a tax or eliminate it if doing so would stimulate a flagging economy.
- Cut a tax or eliminate a tax that is harming the poor and those on fixed incomes.

Since neither of the first two apply in this case, politicians tell us that cutting the cost of gasoline and home heating fuels will help seniors and others on limited incomes.

But will it?

Of course not.

Nor will cutting gasoline taxes reduce the overall cost of living, thereby helping the poor.

The only people deriving a benefit from lower gas prices would be those powering their SUVs. Odds are Grandma doesn't drive an SUV . If she does, she damn well isn't trying to live on Old Age Security (OAS) and therefore doesn't need public assistance.

If any government wanted to help the poor and those on fixed incomes, it should simply implement a new basic living allowance that would transfer cash directly into their hands, just as with OAS. Every province could fund such a program out of the gasoline taxes from the gas-suckers in the SUVs.

Give some federal assistance and a few minutes of brain power and we might just revamp the social assistance and old age security system in the country to an affordable means of providing guaranteed minimum incomes. Such an idea was proposed by the Wells administration in Newfoundland in 1992 and soundly rejected by the Chretien government. Wells' idea was a typically Canadian solution of helping those in need; in these days of swelling federal coffers, it might be time to have another look at the idea.

In place of such bold thinking, we have the most bland of political cries, the kind of stuff dreamed up by the marketers and pitchmen who inhabit some political offices these days: it polled well, therefore it must be good.

When a Liberal like Gerry Reid or any New Democrat finds himself in agreement with Stephen Harper, that should be a clue he is on the wrong track.

That no one else in the country is talking about such an eminently simple, feasible and worthwhile an idea suggests we could all use a kick in our wallets, our backsides or wherever else we keep our brains and compassion these days.