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Australia Repeals Carbon Tax

schwit1 notes that the Australian government has repealed a controversial carbon tax. After almost a decade of heated political debate, Australia has become the world's first developed nation to repeal carbon laws that put a price on greenhouse gas emissions. In a vote that could highlight the difficulty in implementing additional measures to reduce carbon emissions ahead of global climate talks next year in Paris, Australia's Senate on Wednesday voted 39-32 to repeal a politically divisive carbon emissions price that contributed to the fall from power of three Australian leaders since it was first suggested in 2007.

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  1. it is the wrong way... by Anonymous Coward · · Score: 2, Informative

    Taxes are exactly the wrong way to do this.

    It seems like a good idea. Until you realize what exactly do they do with taxes? We see the big ticket items sure. But there are zillions of other ways we are being ripped off.

    http://steshaw.org/economics-i...

    We over and over do exactly the wrong thing to save the world. Which ends up doing the opposite.

    I make a grand prediction here. They gain and lose nothing by removing this tax. Other than a cost that their public must shoulder. The producers are not going to eat the cost that is for sure.

    1. Re:it is the wrong way... by Anonymous Coward · · Score: 2, Informative

      The entire idea is that businesses will strive to become more efficient such that they produce less pollution so that they'll be taxed less.

    2. Re:it is the wrong way... by dudpixel · · Score: 5, Informative

      It gives companies who pollute less an advantage, and it gives businesses an incentive to look into renewable energy.

      For example:
      Electricity prices would go up but only until it became cheaper to get solar, and at that point the price war resumes. Customers will not pay higher prices if there is a cheaper alternative, and so a carbon tax opens up an advantage for technologies that cause less polution.

      Besides, the stats in Australia show that the carbon tax was working.

      --
      This seemed like a reasonable sig at the time.
    3. Re:it is the wrong way... by itzly · · Score: 4, Informative

      Except that the businesses can decide to change the production process. They could invest in solar energy to power the factory, and because they'll be paying less carbon tax, they can lower the cost of the product, and increase sales and profits.

  2. Re:Dissappointed by Anonymous Coward · · Score: 3, Informative

    You realize that already, AGL announced they are going to make $200 million less profit this year, because they won't be getting government carbon tax assistance?

    This wasn't hurting big business, it was just hurting the consumers. The big guys all had exemptions or 'assistance'.

  3. Govt panders to short-sighted voters, news at 11 by aXis100 · · Score: 5, Informative

    Voters love the environment until it costs them money.

    The Australian economy is having some troubles, but by world standard we are doing OK. Some poeple are genuinely doing it tough and struggle to afford the higher prices caused by the carbon tax, so they want it repealed. More poeple still *think* they are doing it tough, but can still afford ciggies and pay TV. These are a prime demographic for swinging votes, so the government loves to give them a price cut too.

    Fearmongering and a brutal budget this year have made things worse, we are going into Austerity mode (when it is arguably not required) so poeple think that doing something responsible for the environment like the carbon tax is just a "nice to have" and easily discarded.

    Makes me sad to be an Aussie sometimes. The current government has agressively wound back the clock on science and social responsibility:
    - Abolished Australian Renewables Energy Agency, worth $1.3 billion.
    - Stretched $2.5 Billion Emmisions Reduction Fund over 10 years instead of 4
    - Cut $460 million from Carbon Capture and Storage
    - Scrapped the National Water Comission and the Standing Council on Enviroment and Water
    - Cut $110 milliion from CSIRO (the research group that developed WiFi and lots of other cool things)
    - Cut $75 million from the Australian Research Council
    - Cut $80 million from the Cooperative Research Centres program
    - Cut $8 million from the Australian Institute of Marine Science
    - Cut $120 million from the Defence Science and Technology Organisation
    - Cut $28 million from the Australian Nuclear Science and Technology Organisation
    - Cut $36 million from Geoscience Australia

  4. Re:Govt panders to short-sighted voters, news at 1 by aXis100 · · Score: 5, Informative

    Oh, I forgot to add - they *didnt* cut the $222 million school chaplaincy program. The agenda is clear, they are just religious luddites.

  5. Re:Swapping Mr. Pigou for Mr. Magoo by bane2571 · · Score: 3, Informative

    AGL are reporting that their most polluting coal fired electricity plant(s) is now $186M less profitable due to loss of government funding provided entirely by the carbon tax. Essentially it was funding pollution, not penalising it. PEr the AFR: http://www.afr.com/p/business/... (paywalled, but the summary say it all) The carbon tax never did anything due to a ridiculous number of exemptions and pay-back subsidies designed to protect labour voting areas - one of which the above coal fired plant is in.

  6. Re:Govt panders to short-sighted voters, news at 1 by Anonymous Coward · · Score: 2, Informative

    Oh, I forgot to add - they *didnt* cut the $222 million school chaplaincy program. The agenda is clear, they are just religious luddites.

    Hmm, so the current Liberal PM, Tony Abbot is a "religious nutter" for supporting the chaplaincy program.

    Wheres the previous Labor PM, Kevin Rudd (his political opponent)'s position was :

    “I have always been a strong supporter of the role of chaplains in our schools — because they make a difference. They provide an additional adult role model in the school. They help connect the school community, including parents and teachers as well as children themselves. They can arrange expert help with specific challenges, such as dealing with family breakdown, bullying, self-esteem, drugs, grief and behavioural management problems.”

    Oh. Ok, let's try his predecessor, Julia Gillard who is famously an atheist, surely she'd think it was terrible. She had this to say to an ABC reporter in 2010:

    "I think it's a great program... I believe it's a great program" (And that $222 million figure is from when she increased the funding to it.)

    However much you might dislike churches, governments of both persuasions have consistently found the chaplaincy program to be a good thing. And the problems they have faced in court have been around how the federal government funds local programs (rather than going through the states), not actually around what the chaplains do.