This article considers the reasons why Tony Abbot, the Australian PM, decided to ditch the Carbon Tax, adopted by the previous Labour Government, and ponders on the possibility that the USA might consider putting their own Carbon Tax in place and the consequences for their economy of doing so.
The US proposed carbon tax by Democrats redistributes the funds back in one or more ways; thus, money moves from those who most consume carbon to those who consume the least. The gov can keep overhead low since they already have data gathering, taxing, and related faculties in place. The industry being taxed doesn't like it.
ReplyDeleteSo what will happen is that those energy intensive industries will become uncompetitive and will eventually go out of business, just as is happening here in the UK. These businesses will be replaced by imports from other nations that don't have a carbon tax. They will probably have lower emission standards as well, so the CO2 will still be emitted, but the USA workers will lose their jobs.
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