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The idea that the US is somehow going to take all our shipping traffic if we add 3 cents more (or even slightly less cost) to the cost of gasoline is a pretty bizarre argument, and one that seems to have holes big enough to drive the better part of a blitzkrieg through
It's also the sort of thing that only makes sense if *we haven't been improving our rail capacity, the sort of thing that the US has been doing over the past 4 years*
ie
regardless whether or not our price of gasoline is 3 cents more, or the same as it is today relative to the US price... the cost of shipping is going to be steadily growing relatively more expensive the more the US invests in their long-haul infrastructure and the more we treat it as given that ours will be as good as it will ever be
but at the same time: the cost of extra north-south distance to 'avoid' gas taxes in canada get expensive in a hurry, and unless canada is banking on the shipping from europe or asia/the middle east to eachother (without crossing central europe)...it's unclear what else would be affected in any substantial way
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@jeffcliff Today I learned #TIL: https://www.investopedia.com/terms/p/pigoviantax.asp
Thanks.
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and, of course the increased revenue from this pigovian gas tax enables potential for lower taxes elsewhere (eg PST) that this suddenly enables, making internal economies much more competitive, again
but no one's going to talk about that
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"but some shipping/logistic companies will have to move south, and then who will move our product to market"
this doesn't make sense on the face of it. If there's demand to move product (ie south) here that's a boon to canadian exports, and the lack of cross-continental shipping will make such transport cheaper, and more relatively efficient relative to alternatives, making a tighter internal economy
if there isn't, then the export of our logistic companies makes economic sense on its own