Archive for July 10th, 2011

Carbon Dioxide Tax

I can sum this up very easily.

A $23 per tonne price on carbon dioxide emissions which will raise less money than the government is promising to spend in compensation for the price increases which this tax will cause (which leaves less than nothing to spend on the stated aim of “fixing the climate”). In fact, over four years, the compensation will cost the government $4.3 billion more than what the tax will raise. The last giant scheme which cost more than what it raised was the solar feed-in scheme where people were paid more than the retail price of electricity for the power which they generated from their solar panels. Not surprisingly, that plan had to eventually cut costs, and the compensation was where the cut was made…the same thing will happen here. Do not believe that you will be better off under the carbon dioxide tax. 20 cents per week will be reduced, and you will be worse off in the long run.

Industries will pass the cost of the carbon tax on to you. Even if the government compensates you for this, this will cause inflation. If the tax’s compensation then rises to meet this cost, then either the carbon tax has to go up to cover this cost which causes prices to go up which causes more inflation, and we enter a deadly cycle which will destroy our economy, or some other tax has to go up resulting is less money for consumers to spend which will result in less sales, less jobs, and even more economic turmoil.

And if you believe that you will be better off under this tax, consider this. Julia Gillard has admitted that a dual income household earning $120,000 per year (that’s an average of $60k each, it’s a fairly typical household) with a teenage child (read: receiving some extra benefits from the government) will be $375 per year worse off, or $7.20 per week. Just think how much more worse off they would be without the government benefits for the child, a situation which is fairly common among young couples. Perhaps one of them will work less so that they get more carbon tax compensation.

This is a convoluted version of socialism. Socialism denies people the opportunity to make something of themselves by disincentivising success and incentivising reliance on the government by taking from people who earn a living and giving to people who don’t. It fails everywhere it is tried because people learn that there is no need for them to do any work if the government will provide for them, and then eventually not enough people are producing for the needs of the population, and the scheme collapses.

The big question for me is, if, by the government’s own admission, this tax will not affect the climate, why bother having it at all? One can’t help but believe that this has nothing to do with climate change, and everything to do with social change.

Without being melodramatic, this tax will ruin this country. We must fight it. We must make all members of parliament aware that we will not support them if they support this tax. We must cause the repeal of this hideous and destructive assault on our country.


2 comments July 10th, 2011 at 03:02pm


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