http://brookesnews.com/greens/garnaut-and-gillards-carbon-tax-plan-is-an-impending-disaster/
Garnaut and Gillard’s carbon tax plan is an impending disaster
Gerard Jackson
Monday 21 March 2011
Professor Ross Garnaut’s call to cut income taxes by $5.75 billion for low and middle income earners is an indirect admission of the ghastly costs of Julia Gillard’s destructive carbon tax. It is also an admission of Garnaut’s commitment to the tax that should raise serious questions about his economic competence.
He wants what he calls a carbon price to be fixed at $20 to $40 a tonne, after which there would be a compound increase of 4 per cent a year. (carbon tax or carbon price: it is a distinction without a difference.) It is estimated that a tax of $26 would bring in about $11.5 billion in 2012-13. Not only does the tax raise more revenue for Labor politicians to feed on it also compensates the victims while raising the level of productivity. And it is able to do all of this even though, according to Garnaut, “the economic impact” will only be “moderate”. The only thing it doesn’t do, apparently, is turn stone into bread.
(What baffles me is how a professor of economics can seriously claim that a government can raise real wages for everyone, which is what rising productivity does, while implementing polices that reduce the size of the capital stock, which is what Garnaut’s precious carbon tax would do. Even more baffling is the fact that no one else has point this out.)
But if the impact of the tax is moderate why would it cause, as Professor willingly Garnaut admits, a “large scale loss of livelihood as a result of” its implementation? And how does a tax policy that has such severe economic and social consequences create a situation where “middle income earners will be better off directly as a result of these arrangements”? The answer is simple: their forced sacrifice will save the planet for future generations. And I kid you not.
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