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

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

Australian organisations are relying on business continuity plans built for a far more predictable world

Tariff escalations, supply chain fragility, geopolitical events, and the ongoing threat of cyber disruption have reshaped the risk environment facing Australian organisations. The problem is that ma...

Daily Bulletin - avatar Daily Bulletin

How to Rent a Car for Uber in Melbourne: What Every New Driver Needs to Know

Starting out as an Uber driver in Melbourne is not as complicated as it sounds but getting the vehicle right is where most new drivers get stuck. Uber has strict requirements around vehicle age, condi...

Daily Bulletin - avatar Daily Bulletin

When Should You Speak to a Lawyer About a Legal Issue?

Legal issues can begin with a simple question, then become harder to manage once formal steps are involved. Many people wait until a matter feels urgent before seeking guidance, even though earlier ...

Daily Bulletin - avatar Daily Bulletin

The strategic rise of Bali as Australia’s next essential healthcare support hub

As Australian healthcare providers grapple with unprecedented operational bottlenecks, a new nearshore model is quietly transforming patient care delivery. Forward-thinking organisations,  including...

Daily Bulletin - avatar Daily Bulletin

Cost Savings and Benefits of Using Used Pallets in Logistics

In today’s competitive logistics and supply chain industry, businesses are constantly looking for ways to reduce operational costs without compromising efficiency and reliability. One of the most prac...

Daily Bulletin - avatar Daily Bulletin

How Fulfilment Services in Australia Help Businesses Scale Efficiently

The growth of e-commerce and modern retail has transformed customer expectations. Consumers now expect fast shipping, accurate order processing, and seamless delivery experiences regardless of where...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Why Businesses Are Choosing Virtual Reception Services

In today’s fast-paced digital world, businesses are constantly evolving to meet the needs of their...

Why Concrete Pools Offer Endless Design Possibilities

Imagine stepping into your backyard and being greeted by a stunning pool that reflects your person...

How Legal Advice Can Help with Driving Offences

Driving is a part of everyday life for many people. It allows us the freedom to travel, commute, a...

How Experienced Lawyers Support Criminal Defence

Facing criminal charges can be one of the most daunting experiences in a person's life. The stakes...

How media and Digital Marketing agencies Help Brands Stand Out

In today’s hyper-connected world, standing out is more challenging than ever. Brands are competing...

How to Choose the Perfect Honeymoon Destination

Your wedding day is just the beginning of an incredible journey together. After saying "I do," it’...

Walking Shoes vs Running Shoes: Which Are Better for Daily Walking?

Running shoes have become the default athletic footwear for a lot of people who rarely run. That ...

What Happens to Your Rubbish After It Leaves the Kerb

Most of us don’t think much about rubbish once the bin lid closes. The truck arrives, the bins are e...

Thermoplastic vs. Paint: The True Long-Term Cost Comparison

Line marking looks like a simple line item on a school maintenance budget, until the true cost of ...