Read The Times Australia

Daily Bulletin

“There is such confusion in my powers.”

  • Written by: The Conversation
imageCO

Here is a definition in search of a term: what do we call a calculated political strategy to confuse the citizenry in order to gain an electoral advantage?

For anyone who thinks clearly, and wants to minimize ambiguity in their communication, definitions matter.

In political discourse certain terms have diverse interpretations so definitions are not clear-cut. Think of “freedom”, “democracy” and “equity”. But there are technical terms that have long-standing, unambiguous and uncontroversial definitions, so that experts who use them know exactly what they are communicating to their audience.

One of those unambiguous terms is “tax”. A tax is a compulsory payment to a public authority for the purpose of raising revenue and sometimes also to change behaviour. The GST and exemptions to it is a good example. Unlike a fine, a tax is imposed on a broad segment of the community rather than on individuals.

A carbon tax is a penalty levied on the carbon content of fuels. It’s paid by those entities responsible for the emission of carbon dioxide from the combustion of fossil fuels. So for every tonne of carbon dioxide that, say, a coal-fired power plant emits it must pay a fixed amount to the government.

Paying the government for a permit to be able to engage in a certain activity does not qualify as being taxed. If it were then buying a fishing permit would be paying a tax, perhaps “a great big fish tax”.

It’s worth noting that while imposing a carbon tax is designed to reduce the amount of carbon dioxide emissions, it does not attempt to determine the amount emitted in any year, say.

An emissions trading is the opposite of a carbon tax. The government sets a fixed limit or cap on the amount of emissions that polluters can emit in, say, a year. Polluting entities must own a permit for each tonne of their emissions. The overall number of permits is fixed at a level lower than the tonnes of carbon dioxide that would be emitted without the cap.

The demand for permits exceeds the supply. Permits to emit can be bought and sold (i.e. emission permits are “tradable”) so that their price is determined in the market according to supply and demand.

So a carbon tax and an emissions trading system differ in a fundamental way: under a carbon tax the price of carbon emissions is fixed by the government and the amount of emissions varies; under an emissions trading system the amount of emissions is fixed by the government and the price varies.

Anyone with a nodding acquaintance with economic knows this. And any politician engaged in the formulation or public advocacy of one or another ought to understand this essential distinction.

In no sense can an emissions trading system be called a carbon tax. And yet various members of the Federal Government, led by the Prime Minister, have recently been attacking the Labor Party’s proposed emissions trading system (ETS) as a “carbon tax”. It’s reasonable to assume they know the difference between the two – the three leaders of the Liberal Party prior to the current one all promised to introduce an ETS.

Environment Minister Greg Hunt has been particularly deceitful. He has followed his leader in describing Labor’s proposed ETS a carbon tax. Yet he understands the distinction perfectly well. He co-wrote a thesis titled “A Tax to Make the Polluter Pay” on precisely this topic. A number of quotations from it can be found here.

Agnotology is the deliberate cultivation of ignorance, which does not quite capture the phenomenon we are witnessing, the deliberate cultivation of confusion. I invite anyone who knows Ancient Greek to coin a new term?

Disclosure

Clive Hamilton is a member of the Climate Change Authority.

Authors: The Conversation

Read more http://theconversation.com/there-is-such-confusion-in-my-powers-45266

Business News

Options Available When a Company Faces Financial Distress

Financial distress can develop gradually or arrive suddenly, and when it does, the decisions made in the early stages often determine what options remain available later. Directors who act promptly ...

Daily Bulletin - avatar Daily Bulletin

What Healthcare Teams Look for When Choosing Specialist Surgical Supplies

In clinical environments, small details rarely stay small. A delayed instrument, a poorly matched device or inconsistent supply quality can affect theatre flow, staff confidence and patient outcomes. ...

Daily Bulletin - avatar Daily Bulletin

Reducing Sales Friction Through Centralized Content Delivery

Sales friction appears whenever buyers or sales teams face unnecessary obstacles in the buying journey. It can happen when information is hard to find, when messaging feels inconsistent, when product ...

Daily Bulletin - avatar Daily Bulletin

Why Choosing the Right Bollard Supplier Matters for Australian Businesses and Public Spaces

From busy CBD streetscapes to sprawling warehouse loading docks, bollards have become one of the most essential safety and security fixtures across Australia. Whether protecting pedestrians from veh...

Daily Bulletin - avatar Daily Bulletin

Why Modular Content Is Transforming Modern Marketing Teams

Modern marketing teams are expected to produce more content than ever before. They need to support websites, landing pages, email campaigns, social channels, product pages, sales enablement material...

Daily Bulletin - avatar Daily Bulletin

Everything You Need to Know About Getting Support from Optus

Whether you've been an Optus customer for years or you've just switched over, at some point you'll probably need to contact their support team. Maybe your bill looks different from what you expected. ...

Daily Bulletin - avatar Daily Bulletin

The Marketing Strategy That’s Quietly Draining Sydney Business Owners’ Bank Accounts

Sydney businesses are investing more in digital marketing than ever before. The intention is clear. More visibility should mean more leads, more customers, and steady growth. However, many business ...

Daily Bulletin - avatar Daily Bulletin

Why Mining Hose Solutions Are Essential For High-Performance Industrial Operations

In environments where the ground itself is constantly shifting, breaking, and being reshaped, every component must be built to endure. Mining operations are among the most demanding in the industria...

Daily Bulletin - avatar Daily Bulletin

The Reason Talented Teams Underperform

If you’re in business, you might have seen it before. A team of capable and smart people just suddenly slows down, and things start spiraling out of control. On paper, everything looks perfect, but ...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Why Stress Relief For Dogs Is Essential For Emotional Balance And Long-Term Wellbeing

Managing emotional health is just as important as physical care when it comes to pets, which is why ...

Australia’s Best Walking Trails and the Shoes You Need to Tackle Them

Australia is not short on spectacular walks. You can follow ocean cliffs in Victoria, cross ancien...

Why Pre-Purchase Building Inspections Are Essential Before Buying a Home in Australia

source Have you ever walked through an open home and started picturing your furniture, family d...

5 Signs Your Car Needs Immediate Attention Before It Breaks Down

Car problems rarely appear without warning. In most cases, your vehicle gives clear signals before...

Ensuring Safety and Efficiency with Professional Electrical Solutions

For businesses in Newcastle, a safe and fully functioning workplace remains a key part of day-to-d...

Choosing The Right Bin Hire Solution For Hassle-Free Waste Management

When it comes to managing waste efficiently, finding the right solution can save both time and eff...

Why Cleanliness Is Critical In Childcare Environments

Children explore the world with curiosity, often touching surfaces, sharing toys, and interacting ...

What to Look for in a Reliable Australian Engineering Partner

Choosing an engineering partner is rarely just about technical capability. Most businesses can fin...

How to Choose a Funeral Home That Supports Families with Care

Choosing a funeral home is rarely something families do under ideal circumstances. It often happen...