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By GWW (registered) | Posted February 16, 2016 at 19:00:02 in reply to Comment 116532
Business expenses, are by definition are deductible, if not deductible they are not an expense. Some costs are capitalized, hence the CAA deductions. If the government is wishing to encourage an activity the may be accelerated CCA. Nobody in the business world or having an understanding of accounting would consider these subsidies.
I can empathize with the intent to make fossil fuel production less desirable, to reduce CO2, but in the long run there will be consequences. There will be either higher prices for certain products, or lower wages in certain sectors, or a combination of both and transfer of jobs overseas, if there is not universal regulation, or a taxing system for the implicit CO2 production buried in every product or activity.
If all our power was solar at a feed in price of 80 cents per KWH, most consumers would face an increase of close to 600 to 800 percent, cost of food production, and most consumer goods would also jump.
At the end of the day, all business activity, ultimately is a consequence either directly or indirectly of consumer consumption, and if you wish to change consumption behaviour it needs to taxed or charged accordingly. Raise the price of gas, or tax larger vehicles, increase the costs of heating for homes and buildings. When mandarins from Spain or salads from California cost two or three times what they do today, less will be shipped to Canada, and less CO2 will be produced.
I suspect Canadians will face a drop in our standard of living in order to meet a CO2 level that results in not exceeding a 2 degree celsius temperature rise. The bigger issue is, are all the nations on earth willing to do this together?
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