The government has released modelling showing the effects of the CPRS on household incomes, demonstrating that many low income earners will, on average, be better off financially.
Predictably, this disclosure has added fuel to the fire of complaints from the right about its evils.
In the circles Tony Abbott moves in, redistribution is a dirty word.
That, of course, ignores the fact that everything governments do in tax, benefits, and allowances of whatever kind is redistributive. That includes all the Howard era tax/welfare transfers. It’s not as though Labor has some sort of evil socialist agenda and Kevin Rudd and Julia Gillard are socialist wolves in sheep’s clothing, much as some might like to entertain such fantasies.
It’s no doubt right to say, as Andrew Norton does, that Abbott’s shift in the Coalition’s position to opposition to the CPRS (matched with vague promises of costless emissions savings) exposes the detail of the ETS to more debate. That may not be a bad thing, though it would also be a good thing if its ineffectiveness in achieving its ostensible aims were the focus of the debate. That’s not likely to be the case in the headline election year debate, as Abbott’s move switches attention to hip pockets.
However, anyone who followed the design of the CPRS from the start would be well aware that the government had already anticipated this line of attack. Continue reading ‘“Great new tax on everything”’

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