Showing posts with label Carbon taxes. Show all posts
Showing posts with label Carbon taxes. Show all posts

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.

Thursday, September 16, 2010

Kloppers carbon tax - is it a dodgy boardroom deal?

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Isn't it highly suspicious that a lone mining CEO (i.e. BHP's Marius Kloppers) would suggest a need for a carbon tax just after his company (BHP), Rio Tinto and Fortescue Metal Corp won a huge tax concession over Resource Rent Tax. Maybe he is just a 'born again' liberal, or is there some sinister backyard deal here for Labor to get traction with this ugly tax. Science is not a popularity context. Business CEOs ought not be accepting "popular" scientific opinions.
I don't think this ought to strike anyone as a surprise given that Labor did exactly the same thing before the election. It shored up support with just 3 miners in order to imply that 'reasonable' miners can accept a Resource Rent Tax. It appears to be doing the same here with the Carbon Tax, with another dirty boardroom deal. You cannot trust politicians or CEOs. Its all about their political survival or financial interests. Maybe Gillard even has a Swiss bank account like Graham Richardson. It is not even necessary. It does not have to involve money to be corrupt. Gillard might actually just be a 'socialist', with nothing but contempt for money. But that is hard to fathom when you need it so much in politics. But one can draw a line between ones personal politics and personal lives....compartmentalisation comes easy to people with no principles.
What a shame we abandoned moral philosophy in the late 1890s...we could use it right now. You don't have to worry about corruption when reason is the standard of value. It only takes one right person to set the debate right.
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Author
Andrew Sheldon

BHP chief executive 'selling out' Australia and the facts

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BHP Chief Executive Marius Kloppers has come out in support of a carbon tax. He thinks Australia should take the initiative because he thinks its inevitable. Really?
This is a very suspicious thing for him to say. It stands out in stark opposition to the interests of BHP shareholders....or does it. The only reason that would not be the case would be:
1. If there was some strategic benefit in BHP paying tax before Australia's international competitors. This is unlikely because it would result in a stronger AUD and a higher tax obligation by BHP.
2. If BHP is supporting the carbon tax in a 'secret deal'. It strikes me as rather coincidental that Kloppers would be supporting a carbon tax just after his company (BHP) and Rio Rinto won a huge tax concession over the Resource Rent Tax.

There is however the possibility that Kloppers is an idiot, or more specifically a 'liberal idiot', and that cannot be ruled out. There is no reason to think that bureaucratic enterprises like BHP are well-managed by critical thinkers. It would not surprise me if they accept the climate science of academics from the majority at face value, when they should be critically engaged in assessing it. Science is not a popularity contest. I have seen no evidence to suggest that critical arguments are being given the attention they deserve. Its all about having the 'popular' or political numbers.

It does not concern me that Rio Tinto is not supporting a carbon tax, because they would not have been privy to any 'possible deal'. The integrity of the BHP CEO is in question. We might ask if there is any strategic advantage for BHP in taking over a fertiliser enterprise like Potash Corp. There might be some more significant strategic game play here than I think. I can't see such a link though....so might be reading too much into it. Maybe its just another bulk commodities business it can dominate.
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Author
Andrew Sheldon

Friday, July 23, 2010

Gillard driving Australia to economic distortion

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Australia’s PM says ‘Australia won't be able to meet its targets for reducing carbon gas emissions without charging polluters’. Actually that is not true. She could if she wanted to simply legislate to prohibit or phase out those technologies and industries which cause pollution. After all, if the government really believes there is a dire catastrophe around the corner from climate change, it ought to take that action. The reality is that the government is using ‘fake science’ to lobby for more tax, knowing full well it will not reduce carbon emissions. In fact it will have the opposite effect; as all government ‘ideas’ tend to have. Let me give you some examples:
1. Governments in Australia, NZ, Germany, Denmark, etc had the great idea of offering free insulation to the poor, and to those homes which are reluctant to invest in such schemes. Far from resulting in subsidies, it saw installers mark up their prices, so there was in fact no benefit for home owners. It gets worse. All those installers took on more staff who incorrectly installed the product resulting in legal action, and in some cases the product integrity (i.e. the water-repellant character of the product) has been questioned, i.e. AirFoam in NZ. It gets worse. Far from helping people to save energy, it actually gave homeowners an incentives to shift from insulating their bodies with clothes to using 'inefficiently' heating their entire homes with wood fires. So some 800,000 homes in NZ alone could end up consuming more energy than they would otherwise have used...because consuming it before would have been a waste of money.
2. Governments argue too that penalizing polluters will cut pollution; but in fact it will push industry offshore to China, or other third world countries where standards are more lax, and these companies will have to ship products around, so transport costs will be higher. It can only result in a sub-optimal response. Of course business wants a carbon trading scheme so it can simply pass on the cost to customers. Of course it does not care as long as the world follows the same stupidity. This is the stupid pragmatic or relativist philosophy which will drive the world towards fascism. It gets worse.
3. Governments will be far less efficient with the tax dollars collected than business, because governments don’t actually create wealth. You say governments are not supposed to create wealth..true, but they ought to facilitate wealth creation, not sabotage the process. We must remember we really can’t afford to obstruct wealth creation, lest we be underfunded or too poor when a real catastrophe arises. Its not just about the money either; its the technology that money allows us to fund. Technology which allows us to overcome such challenges. You will not hear about those products from government. Why? Because it is not responsible for them. They are only responsible for the real crises, like financial meltdown, caused by government intervention in financial markets.
For those who still believe there is a primarily human cause to climate change, let me raise the specter of solar flares and sun spots. Research since 2005 is showing that this is a far more plausible cause of recent climate fluctuations. The correlation is unmistakably good for the last few years of day. Al Gore swooned people with his ‘hockey stick’. It was a fabrication based on dubious extrapolation of data.
If there is an end for the world in sight, it is going to be precipitated by government, and its unthinking leaders like Julia Gillard. Taxing pollution will not cut pollution it will merely impose a cost on existing plants. It will speed up the replacement of old plants. The reality is that the government does not believe the science either. It just feels compelled to appease its unthinking electoral support base. Really Labor cannot think beyond that. It will do a fabulous backdown after the election. Should we be worried then? Well yes, because we will awaken the next day as a fascist regime where facts have been displaced by the arbitrary assertions of politicians. Liberals in the media will help us get there.
Want to know more about climate change - then listen to critical thinking scientists, not the academics detached from reality with a liberal agenda. You never here about them in the media.
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Author
Andrew Sheldon

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