The recent announcement by Julia Gillard that she is breaking an election promise and will attempt to bring in a Carbon Tax should come as no surprise to anyone. It is simply a reflection of the madness that is the Greens/Labor Party alliance and another example of a policy developed by a Government hooked on spending and raising taxation.
First let’s reflect on what the Government proposes to tax – carbon. According to those who believe mankind is chiefly responsible for heating the planet carbon is now public enemy number one and carbon dioxide (the gas we breath out) is now a pollutant.
If CO2 is a pollutant then nature itself is major polluter as anyone who understands the carbon cycle will appreciate. But you won’t hear much about the carbon cycle from the Government or the Greens because it doesn’t quite fit in with their tax plans.
Besides the Prime Minster is not really into science as we found out when the Government’s chief scientist announced plans to resign recently. Climate change is apparently something Gillard is passionate about but she failed to find the time to sit down and have a one on one meeting with her own chief scientific advisor. But never fear, she had time for union officials and party donors so the ‘important’ issues where not ignored.
A carbon tax certainly has the potential to raise a lot of money for Gillard and Greens Party leader Bob Brown, who appears more like the Deputy Prime Minister every day. After all carbon is the 15th most abundant element in the earth’s crust and one of the most abundant in the universe.
Let’s also not forget that carbon is found in all known lifeforms so since Gillard does not like the word tax (e.g. the flood tax is a ‘levy’) I suggest we call this tax on everything the Lifeform Levy. To me more accurate it is a tax on lifeforms we know of, non-carbon based aliens will be exempt of course.
So what is the tax suppose to achieve? Well apparently if you place a tax on carbon emissions then this will make companies find ways to lessen their emissions so that they can effectively pay less tax.
But there are exemptions, for example the agriculture sector will get a free ride because it’s apparently special. You see there are good carbon emitters and bad carbon emitters. Science does not decide which sectors go into the good basket or the bad basket – politicians do.
This means plenty of other deals will be done and already the coal industry is warning of job losses and asking for support. This is just the tip of the iceberg.
Wayne “the inflation genie slayer” Swan reckons the carbon tax will not cause any major pain for anyone and according to a report in The Australian:
Mr Swan said “every single dollar” raised under the tax would be returned to assist individuals, households and business who will be impacted.
Okay, so let’s think about what Swanny has said very carefully. If a carbon tax is implemented and then every single dollar is handed back, then what is the purpose of the tax in the first place?
What incentives will there be for individuals or businesses to reduce their carbon emitting ways if they effectively get compensated for the impact of the tax in the first place? We already know that higher electricity prices have not cut demand so why should a carbon tax work?
Energy providers are also likely to get some help from the Government and/or they will simply pass the cost of the tax onto consumers via increased energy prices. Since Australia is still stuck in the technological Dark Ages nuclear power is not on the table, so there is unlikely to be any major carbon emission reductions to be had in what is the biggest single source of greenhouse gases in the nation.
Solar, wind, geothermal and tidal power can all generate some of the electricity needed but the fact is that these sources will struggle to cope with the increased demand for power in Australia as the economy and population grows. So that means more fossil fuel power plants will be needed at some point and up will go carbon emissions again.
So the lifeform levy or carbon tax makes as much sense as a dog chasing it’s own tail. More worryingly is that the situation is unlikely to improve since the Greens are out and about spreading misinformation about nuclear power supported by much of the mainstream media which fails to challenge their assertions about nuclear power based on 1970’s era technology.
Already there is talk about increasing taxes on petrol which the Government has failed to rule out and even if they did, who could believe them? How ironic it is that the same crowd who criticised the Howard Government for not doing anything about petrol prices is now about to implement a tax that will, in one way or another, push up petrol prices. I wonder what the petrol commissioner will do…arm wrestle with Bob Brown?
The Gillard Government has simply lot the plot. It’s bad news for investors, it’s bad news for business and if the public wises up they will realise it is bad news for them also.
In just a few short years the Rudd & Gillard led Government has taken a budget surplus, wasted it and then racked up a mountain of debt. What is there to show for all the billions of dollar spent? Not a lot when you think about it.