Tuesday, July 19, 2011

Carbon Tax Package:- Labor is Still not Telling the full Story.(Australia)

After Labor showing such a bad result in the polls this week, The ALP primary vote is down 1 point to 26 per cent - the lowest for either major party in the poll’s 39-year-history, the results were published in The Age. I find it incredible that so many are still standing behind this unelected PM.

It does seem obvious to me that a lot of the population is well and truly turning their backs on the PM and Labor, and I feel that Labor really started falling when Julia announced that they will introduce a carbon tax. Some people, including myself, feel they can no longer trust not only the PM but the Labor Party as a whole.
A reminder of what was said before the election.

So it really does seem like the Greens are taking over power, and Labor is just bending to whatever they want. As you may know Julia is now going around trying to sell the carbon tax package, a few people who I have talked to are asking the question; is she being truthful about what she is saying. I think the question should also be what isn't she saying about the carbon tax package. I have put this is a post before, but for those that may have missed it:- Labor makes a big thing about raising the thresholds on the Statutory tax, but why have they not mentioned that the actual tax rate will be increasing.

                                     Via Andrew Bolt. Click picture for a larger view.

Also another item that I haven't heard Julia or Labor mentioning is that this carbon tax will rise every year. This was talked about before the package came out, but now we know exactly how much it will be going up. As we all know now the carbon tax will start at $23 a ton from July 2012, but every year the price will increase by 2.5% above the rate of inflation. As reported in the ABC.

Also treasury's modelling of the carbon tax was based on $20 a ton not on the $23 a ton that Labor/Greens/Independents decided on. The Australian. This means that all the prices that Labor released are wrong.

Council rates will also rise because of the carbon tax, not only for the emissions coming from local dumps, but also the extra costs the councils will have to pay for street lighting etc. Courier Mail. This of course will mean a rise for anyone renting as well. It will also mean an extra cost for businesses which will be passed on down the line.

Building costs will also rise under the carbon tax, $6.000 for a new home, that's based on the $20 carbon tax, not the $23 that has been put forward. I don't know how much more it will be as the price of the tax goes up, and naturally it will cost more to renovate as well. A very good article about this in the Herald Sun.

The money that the Labor Party has pledged to the UN through their climate change committee, Australia so far have sent $599 Million, that is a lot of taxpayers money for what? Jo-Nova.

I almost forgot; There will be no carbon tax on petrol (under a Government that I lead) said Julia, well that is not entirely true, it may only last for the 1st year of the tax, as the Greens say it will be in the tax. 9 News. Even so in the first year, the electricity rises for the garages will be passed on to the consumer anyway, also the extra power costs at the refinery's.

This is all going to cost a lot more than what Labor is telling us. As far as I'm concerned they may not be lying about this, but they sure are not telling us everything. If people truly believe that this tax is only going to cost us just under $10 a week, and will only add 80 cents a week to groceries sit down and do the sums, and don't forget because we are paying more for everything, the end price with the 10% GST is also going to be more, a tax on top of a tax.

The Labor Party is expecting public opinion to start to turn around after the tax is introduced, they say that people will see the sky is not about to fall and they will find it isn't that bad. My question is, forget about the 1st year of the tax, it's all the following years as it keeps increasing that is the worry, will people fall for this tactic when the tax is introduced, maybe some will, but by the following year they will soon see this is really going to hurt, and no amount of compensation is going to help those that will no longer have a job or keep up with the costs.

Sorry about such a long post, I hope you were able to get a bit of information that you may have been looking for.


Windsmoke. said...

All of the above maybe true or just speculation at the moment, however the Carbon Tax only goes halfway to solving the Carbon Dioxide problem in our atmosphere. This Carbon Tax may reduce Carbon Dioxide Emmissions from big polluters but it dosen't address how to eliminate the Carbon Dioxide already present in the atmosphere. Planting more trees which feed off Carbon Dioxide and return clean air is the most effective way of removing Carbon Dioxide from the atmosphere so planting more trees and stop cutting them down is the way to go. Will this happen, not likely :-).

Mags118 said...

Hi Windsmoke,
You are right about this tax not doing what Labor says it will do, it is just a wealth distribution and nothing more.

I'm a climate skeptic so I'm sorry I can't agree with the removing of the carbon dioxide from the atmosphere. But of course saying that we still have to look at both party's policy's and try and decide what we think is best for Australia. Personally I hate seeing any taxpayers money being spent on this.

What you just described in your comment about the trees, is actually part of the Liberals "direct action policy".
You can read about the Liberal climate change policy here.

Anonymous said...

I like what both of you have to say Windsmoke and Mags 118, or the way you say it anyway. Not one of you has parroted either side of politics agressively, but with rationale and a degree of uncertainty about all facets of the issue. Really, not too many of us know exactly what is right and wrong i suppose. I believe in AGW but have questions from both sides. To me one is charging the large emitters while the other is making us pay through our taxes, which will be passed on to us anyway. I can still see pros and cons for each scheme.I suppose the million dollar question is, which one will eventually work for us.

Mags118 said...

Hi Anon,
Thank You for you nice comment and of course taking the time to visit and read my post.

Of course we have different views on this issue, but really if we were all the same it would be a boring world. It is good to read and get as much information on both sides and then come to what ever decision you feel is right.

I think where the carbon tax is concerned it doesn't really matter whether you believe in climate change or not, because I personally feel that this tax will do nothing to change the temperature of the world at all.

What I would like to see happen is this issue be taken to an election so we can all have our say, not an election for the Government just an election on the carbon tax itself, only because nobody actually voted for a carbon tax at the last election.

I don't know if you saw the video I have in my blog on Professor Lindzen, but he gives some figures on what he believes the outcome of this carbon tax will be. Of course he is a skeptic, but a reputable scientist. You can watch the video here if you are interested.

Again Thank You for visiting and your comment.

Anonymous said...

I appreciate what you are saying mags 118 and appreciate your tolerance of my beliefs. I think the issue goes beyond our beliefs. I suppose firstly, I understand it to be a "price on carbon" not a carbon tax as the opposition refers to it as(There is a significant difference). Now there has been a bipartisan agreement to reduce carbon by 5% by the year 2020. For me this is at least a start, and when the world responds appropriately we will have a headstart on the emerging renewable energy industry. I understand for you it makes no sense either way. I honestly hope some day I can feel assured about this. But the coalition wants to make us taxpaying citizens pay through our taxes through cuts to the budget, that has to impact somewhere. I hear an increase of 5% on the GST is a possibility. Billions of dollars will go to the biggest polluters thanks to the Australian taxpayer for renewable energy innovation under the coalitions scheme. Labor wants the biggest polluters to pay and have introduced price gouging mechanisms to ensure that these costs don't leak too substantially to the consumer. Both want reductions, however, for me it seems logical to at least make our biggest polluters pay through their mulit billions of dollars profits and shouldn't be a direct cost that we should pay that seems much more substantial. Anyway, thanks for putting up with Mags 118 and best of luck.

Anonymous said...

I forgot to add one other point. Don't get me wrong, I'm not a fan of Gillard but I am a fan of carbon pricing as opposed to the direct action plan.

Gillard had mentioned that she hadn't mislead the people of Australia, which in all honesty, she didn't. She always stated she believed in AGW but would not introduce a carbon tax (True). She actually never lied. A carbon tax is simply a never ending government revenue raiser where as the carbon pricing is the start of an ets, which was recommended by the EU. It actually operates on market mechanism only with government intervention on capping(I suppose basically when it tranisitions into an ETS in 2015). All revenue from this tax is costed into supporting low income and energy innovation but wouldn't have to if the biggest polluters would suffer the loss of some pocket money.

Mags118 said...

Hi Anon,
Of course we will have to agree to disagree, but I certainly will give you my thoughts, on your comment, with no disrespect to yourself.

There will not be any rises in the GST, the way it was set up every state in Australia has to agree to it for a start, it cannot be changed through Federal Government on it's own. Footnote:- I had to smile at this because when Labor was in control of all the states as well as Federal, the same thought crossed my mind that Labor was going to up the GST. :)

"Big Polluters" as the Government likes to refer to some factories, is mainly places that use a lot of electricity, these businesses, cement,aluminum,steel products and the list goes on, has to rely on a lot of power for those company's, that is their big "pollution" any extra costs, and there will be a fair bit will be passed on down the line, consumers will pay. As the power get more and more expensive, they will no longer be able to compete with o/seas manufacturing, so jobs will be lost, a lot of our competitors will not and have not got any sort of ETS or a "price on carbon dioxide"

The spin the Government is throwing at the "direct action plan" is just that. Think about how many Government Dept. have to be set up for the money go round, it will be huge, this alone will cost us Millions. The money the Government sends to the UN also in the Millions, the separate dept. for the tax office, and again the list goes on. She also gave $10 Billion Dollars to the Greens. There has already been Billions spent, and I personally don't see anything, all this money could of been put into our hospital system, etc. So not only is the Government spending our revenue, it will also be costing us every time we go the supermarket, buy cloths, anything, as well as all our rates will rise, as well as all our utility bills. If I had to chose I would go with the direct action plan.

I will always believe that Gillard lied to the people, this is why I firmly believe she has no mandate to introduce this tax. She is a PM that is not elected by the people, in a minority Government, she should be doing nothing but just making sure that everything stays right for the Country and the people, then introduce whatever she likes at the next election. It is roughly 18mths until the next election.

Any sort of renewable that is available today can not and never will be able to replace our base load power. No doubt in the future there will be new inventions and eventually someone will hit the jackpot.
That is my big rave for the night.:) Please feel free to debate at anytime.

Anonymous said...

It is very thought provoking this issue. Hopefully either way i hope we have a system that benefits our nation as a whole despite which side of politics introduces what. I wish I could be confident to say AGW is not real, and maybe this could be possible dependant on the science debate.