Finally in the last week of the election campaign carbon tax and its effect on Australia has been raised as an election issue. Kevin “great moral challenge” Rudd has tried to avoid raising the Carbon Tax by saying that he will bring the ETS (emissions trading scheme)Â period forward, ending the Carbon Tax period early. This is just semantics, as the ETS is just the Carbon Tax by another name. As Tony Abbott has pointed out most of the cost of the ETS is the buying of overseas carbon permits. Australia will emit more CO2 in 35 years time than now, it will just be offset by buying carbon permits from overseas. This is a transfer of Australian wealth mostly to the European Union who issue free permits to their industries, who then sell them on the carbon market who then get money from Australian industries purchasing the permits.
As I wrote two years ago, this enormous paper-shuffle will cost the Australian economy $1.35 trillion dollars. All to reduce our CO2 output by 5%.
The Canberra press gallery beltway insiders have been pushing the Carbon Tax for 3 years. In less than a week they will find that they do not understand ordinary Australians.