Sunday, July 10, 2011

Australia: The restricted carbon tax is just the start

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Some advice on Julia Gillard's carbon tax. Nothing is as it may appear. The Labor government does not play in the realm of facts; only perceptions. The poor for have the perception that this tax will apply to a few rich countries. This is where you need to think conceptually...to anticipate the future; to see around corners.

This strategy of targeting specific 'wealthy' industries (or the richiest people) is how they introduced broad-based income tax. It was a tax on the rich, but then it became a retrogressive tax on the poor 'salaryman' after the corporations got tax concessions, i.e. deductions. In this case subsidies. Oh, and the poor liked income tax because it fell on the rich. Having approved of the tax on the rich, it was hard for them to ultimate oppose a broader-based tax.
This is how governments are able to increase tax.

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