alt Hacker NewsI wonder what would happen if Canada taxed electricity exports to the US, and used the money to directly subsidize other exported goods the US applies tariffs to?
Replies
scotty79 • today at 11:39 AM
It might be good to tax exports and use the proceeds to subsidize Canadian consumers. This should snuff out the dependence on export to US pretty fast with little harm to Canadian companies.
cmiles8 • today at 11:55 AM
The US would then just stop importing that electricity and funnel the power in from domestic sources. The electricity comes in from Canada because it’s cheap, not because the US can’t make electricity. Canada would shoot itself in the foot with this move.
➕ show 2 replies
> taxed electricity exports
it is easy to tax exports, but this makes the export less profitable (for the entity making that export). Unless you mean the producer raises prices to cover the new tax - in which case, the export is now more expensive, and less of it gets exported.
It doesn't really help with the tariff situation much in any case - a political problem requires a political solution (such as reciprocal tariffs). Both sides hurt, and there's no good outcome.