Tax Shifting

Even corporate executives are geared up for a green levy.

Lawson Hunter

When
the chief executive officers from some of Canada’s most influential
corporations encourage government intervention to tackle climate
change, you know change is in the air. And in this case, the change
involves a tax shift, a green tax shift, that is.

In
classic economic terms, a tax shift involves the linear movement of
taxes from one source to another, or from one payer or item to another.
The Goods and Services Tax illustrates how a tax is shifted in a
straight line from producer to manufacturer to consumer. Linear
economic models, however, run counter to the cyclical nature of
ecological systems, which replenish resources to counteract the loss of
the original resource.

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