The recent Quebec-California cap & trade auction raised far less than expected, setting an ominous precedent for Ontario’s upcoming auction.
The latest auction sold only 18% of allowances, meaning projected revenue will be much lower than previously thought.
View the chart below to see how badly it went:
Ontario should be watching this with some concern. According to a National Newswatch article, Ontario is hoping to make $1.9 billion off their upcoming auction. There could be serious consequences if they fall far short.
It should be noted that the worst may be yet to come. Under Ontario’s plan, the largest carbon emitters get allowances for free. The reason is that the government doesn’t want those companies “moving to jurisdictions without carbon pricing.”
Right there, the government is acknowledging that their policies could drive businesses away, killing jobs, destroying investment, and increasing poverty. So they’re giving big businesses a free pass.
However, that free pass ends in 2020.
What do you think will happen then?
Those business will just start to pack up and leave. Especially with the United States moving to a lower regulation, lower tax business climate, there could be a stampede of businesses out of Ontario – and all of Canada once Justin Trudeau is done pushing his horrible agenda.
This is just another example that forms of central economic planning, whether through re-distributive cap-and-trade schemes, or over taxation that concentrates massive power in the government – only leads to increased poverty and suffering.
It’s time for government’s across our country to take their boot of the necks of our workers, businesses, and consumers, and let the Canadian spirit of ingenuity and dedication lead our country to great prosperity.
We can’t tax our way to wealth. Instead, we must unleash the potential of our economy and get government out of the way.
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