My musings…
I think that most opinions expressed on the prospect of an Australian emissions trading scheme come from one of two vocal minorities…
From the green corner, we receive an exuberant message that goes something like: “the environment is in grave trouble and must be rescued at any cost”.
From the blue corner, we hear a desperate call of: “the environment is just fine – there’s no evidence to prove otherwise. Your Emissions Trading Scheme will cripple the economy”.
I’m think the majority of Australians are currently in the red corner. They quietly think to themselves: “of course the environment is important but I can’t afford to help out at the moment. I really hope THEY are doing something about it” (whoever they is).
To me, this is a perfect issue for the government to use to frame a new “consumption” tax by stealth. A tax on inflationary spending, under the guise of an “emissions trading scheme” - with the increased revenue returned to the people through reductions to income and company tax. Such an approach would reduce our reserve bank’s reliance on (blunt force) manipulation of inflation via interest rate changes.
Some may whinge a little that the government didn’t go far enough – but they’ll take credit for championing the environment issue and bringing about important changes.
Others will complain that those in power bowed to pressure from extremists. However, they’ll be pleased to see reduced income and company tax.
Working Australians, with enlarged pay packets, will drive their Land Cruisers to Harvey Norman - safe in the knowledge that the environment is in good hands.
Hopefully, more and more folks would see the light and minimize their consumption tax (and, so some extent, footprint) though careful spending. Investors would be able to make decisions with renewed confidence that the economy and inflation are held in check not only by interest rates, but though the mystical magic of a new carbon emissions smokescreen.
Regards – Ben
I think that most opinions expressed on the prospect of an Australian emissions trading scheme come from one of two vocal minorities…
From the green corner, we receive an exuberant message that goes something like: “the environment is in grave trouble and must be rescued at any cost”.
From the blue corner, we hear a desperate call of: “the environment is just fine – there’s no evidence to prove otherwise. Your Emissions Trading Scheme will cripple the economy”.
I’m think the majority of Australians are currently in the red corner. They quietly think to themselves: “of course the environment is important but I can’t afford to help out at the moment. I really hope THEY are doing something about it” (whoever they is).
To me, this is a perfect issue for the government to use to frame a new “consumption” tax by stealth. A tax on inflationary spending, under the guise of an “emissions trading scheme” - with the increased revenue returned to the people through reductions to income and company tax. Such an approach would reduce our reserve bank’s reliance on (blunt force) manipulation of inflation via interest rate changes.
Some may whinge a little that the government didn’t go far enough – but they’ll take credit for championing the environment issue and bringing about important changes.
Others will complain that those in power bowed to pressure from extremists. However, they’ll be pleased to see reduced income and company tax.
Working Australians, with enlarged pay packets, will drive their Land Cruisers to Harvey Norman - safe in the knowledge that the environment is in good hands.
Hopefully, more and more folks would see the light and minimize their consumption tax (and, so some extent, footprint) though careful spending. Investors would be able to make decisions with renewed confidence that the economy and inflation are held in check not only by interest rates, but though the mystical magic of a new carbon emissions smokescreen.
Regards – Ben
