Fun with wealth redistribution

Bob Hawke has a piece in The Australian, urging the Labor party to get on with the job of governing the country. Still a great party loyalist, he touts the benefits of the current government’s policies, as you would expect, but there is one remark that doesn’t quite make sense.

After July 1, when the carbon price is in place, pensions are up, taxes are down and life goes on pretty much as usual for ordinary Australians, a very heavy onus will fall on the opposition to explain why it would cut pensions and increase taxes, if elected.

We’ve heard this before from the carbon tax proponents, the idea that everyone is going to be so happy with the changes, so no one will want big, bad Tony Abbott to reverse them. This ignores the fact that the winding back of “compensation” and tax cuts would go hand in hand with the axing of the carbon tax.

Only a certain percentage of revenue raised from the carbon tax would be put into compensation, with the rest thrown at renewables, carbon credits and the UN. Therefore, the population would be financially worse off overall. Hawke suggests that when Abbott fulfills his “pledge in blood”, people will be opposed to it, as more would be better off under the carbon dioxide tax. Such an outcome could only be achieved through a substantially uneven redistribution of money. While not the primary goal of this scheme, this example of social engineering is certainly an appealing aspect of this tax to its advocates.

It’s a Labor policy through and through: taking money from some to buy votes from others.


About Climate Nonconformist

Hi, I'm the climatenonconformist (not my real name), and I am a global warming skeptic, among the few in generation Y. With Australia facing the prospect of a carbon tax, we need to be asking the simple question; where is the evidence that our emissions are causing any dangerous warming?
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s