Sunday, February 27, 2011


What a wonderful world it is when our government thinks up a new tax.
There is constant debate about the pro and cons of each new policy -(ie tax) - and how effective the policy will be.
For example, the natural disaster that has befallen Queensland was quickly followed by the Prime Minister announcing a new levy (aka Tax) to fund reconstruction of Brisbane.
Australians will lead the world in saving the planet by having a carbon tax imposed on us. This is supposed to help reduce carbon in the atmosphere but from a government's point of view, it means lots and lots of money pouring into their coffers.
While we're at it how about a new tax on petrol, all in the name of saving the planet of course.
And here's how it goes, petrol is already taxed so that the price we pay as consumers at the pump is on parity with world prices. Then a GST (tax) is added on to that price before the final retail price is set.
But don't fret because it's all for a good cause (no not increasing government revenue silly) but saving the planet.
And as for the carbon tax to be imposed on those evil power companies who spew carbon into our atmosphere, it will supposedly force them to reduce their carbon emissions.
I think power companies will prefer to increase the price of electricity sold to consumers and continue on their merry way not giving a rat's arse about reducing carbon emissions. Let's face it power companies have a captive market so they can't lose no matter how expensive the electricity.
Of course we all know that motor vehicles are the major cause of carbon monoxide in our atmosphere so inevitably there will be a ....TAX.... on vehicle emissions.
This will raise the cost of food production which requires motor vehicles for transport and distribution. The same goes for all other products. Increases in prices caused by the emissions tax will have further flow on effect for the government with an increase in GST (goods and services tax) which at 10% added on top of the retail price, means even more money for government.
By the way, don't forget that oil supplies have reached a plateau and inevitably there will be increases in the cost of oil as demand continues to escalate.
This would probably result in a new tax on oil to encourage industry to find alternatives to a finite and dwindling resource.
Conflict in the Middle East, especially in Libya means the price per barrel of oil has increased because Libya is a major source of the world's oil.
Yes, how about another tax on oil to compensate for the Libya crisis?
And if that's not bad enough, the population is aging which means that a large percentage of our workforce which is now paying taxes will soon reach retirement age with the resulting dramatic reduction in tax revenue for the government. Maybe it's not enough to increase the official age of retirement from 65 to 67 to encourage people to stay in the workforce and keep paying taxes.

1 comment:

Jeannie said...

Yup. Prices rising here too. What kills me is that our government sells the gas cheaper to the States than to us.

IF the extra carbon really is responsible for the weather changes, I suspect it's all the seismic action releasing carbon into the atmosphere that's responsible - not us.