Why would a carbon tax hurt the economy? ?

  • Thread starter Thread starter Flavian Hardcastle
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Flavian Hardcastle

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Hi. There has been a lot of talk here in Australia about the promised Emissions Trading Scheme (ETS), and many seem to believe it will hurt the average Australian consumer.

But I wonder why it has to. If govt decides it is going to tax Carbon intensive products and services, why can't it simply take a comparable amount of tax off of other goods and services, to help compensate consumers? The government could also deliver income tax cuts to help compensate as well.

The objective isn't to punish Australians for being carbon emitters. It is simply to bias them towards lower emission products.
 
I believe the real objective is for the government to increase revenue. Carbon emissions is the new sin tax. If the tax is really just to punish the carbon emitters, they would do exactly as you have stated.
 
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