Labor to reintroduce carbon tax and mining tax

download (8)Thanks for the heads-up from Andrew Leigh MP, formerly known as Professor Andrew Leigh.

Now Shadow Assistant Treasurer, he has announced that the carbon tax and the mining tax were such good ideas that an elected Labor government will reintroduce them.  Hard to see the mining tax raising any revenue, but what the heck!

Labor really likes having these things on the books and impose high compliance costs on companies to ascertain that no tax is payable.  But the real benefit is to imagine revenues over the forward estimates, spend it and then cry … OOPs, the revenue never materialised. (Ref: Sir Wayne Swan, Manual on Imagining Budget Surpluses).

I think A Leigh must have already memorised that manual by heart because he mentions the imaginary $80 billion in cuts to education and health (his party’s unfunded spending over the horizon of the forward estimates – just keep repeating the figure and someone might believe you and tell PR company to include in election ads); scorns at unachieved savings because his party has blocked them in the Senate; and includes savings that haven’t even been put to the Senate.

And as for his bleatings about the Coalition’s failure to clamp down on multinational companies and to force them to pay more tax in Australia, Sir Wayne left this area in a terrible muddle, all unlegislated.  And Leigh knows this.

The proposed thin-cap rules were unworkable and would have had diabolical effects on Australian companies – good one, Swannie.  And then proposed next step was completely unimplementable.  And then Leigh bleats on about our delay (of one year) in introducing a common reporting regime.  Because imposing an additional bill of hundreds of millions on our banks is fine?

I guess that’s what shadow assistant treasurers do.  Bleat on, say things they know not to be true and hope for the best.

But thanks for the heads-up on Labor reintroducing the carbon tax and the mining tax.

Here’s Andrew’s tick the box for the week piece:

AS Australians continue to rage about the unfairness of the Government’s first budget, Treasurer Joe Hockey is preparing his second. New Assistant Treasurer, Josh Frydenberg, has flagged spending may again be slashed in the 2015-16 fiscal plan.

Australians who have watched the government rip $80 billion from schools and hospitals, $23bn from pensions, $11bn from foreign aid, $5bn from universities and $3bn from Medicare will be worried about where fresh cuts will come from. But while the Assistant Treasurer is trying to sell the idea that spending needs to be slashed further, he is ignoring the role his party’s decisions have played in deepening the national deficit.

Since coming to office, the Abbott Government has thrown out significant sources of revenue like the carbon price and the mining tax and added exorbitant new spending on paid parental leave and the Direct Action climate scheme. If the government had made more sensible decisions on all these fronts, today’s budget outlook would likely be much less bleak. Look at the carbon price. Sure, it was an important environmental measure; after all, Australia saw the biggest emissions drop in a quarter of a century under carbon pricing.

But it was also an important economic policy, raising money that was used to provide assistance to households, including through lower taxes. Ross Garnaut refers to the benefits of higher pollution taxes and lower work taxes as the ‘double dividend’ of carbon pricing.

On the Government’s balance sheet, Direct Action raises no revenue, and will actually cost billions to implement. Oh, and experts estimate that it will achieve less than one-third of the mitigation needed to meet Australia’s bipartisan 5 per cent emissions reduction target.

Then there’s the mining tax. Don’t take my word for it — look at the Coalition’s books, which show repealing the mining tax will cost the budget billions of dollars.

The government cynically left its Paid Parental Leave scheme off the books in its first budget, citing ongoing negotiations with the states. But the National Commission of Audit priced it at $5.5bn a year, rising to over $8bn a year over the next decade.

This makes it three times pricier than our current equitable Paid Parental Leave scheme. And yet the Productivity Commission estimates that this change would have no impact on productivity or participation.

The bottom line is this: if the Abbott Government hadn’t scrapped the carbon price and the mining tax while splashing out on an unfair parental leave scheme and an ineffective carbon plan, the budget would be comfortably back in surplus in 2017-18.

That’s not even factoring in the $1.1bn the government has given to let multinational companies like James Hardie shift their profits offshore.

So when Frydenberg says further cuts to essential services are needed, Australians should ask why this government’s only economic instinct is to get out the axe.

There are many ways to balance the books, but few involve paying companies to pollute, reducing the tax of mining magnates and spending tens of thousands on the highest-earning mums.

By slashing spending in its first budget, the Government broke almost every pre-election promise it made. Instead of scripting Budget of Broken Promises II, the government reconsider some of their decisions that have worsened the deficit. As the saying goes, when you are in a hole, the best thing you can do is to stop digging.

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29 Responses to Labor to reintroduce carbon tax and mining tax

  1. ChrisPer

    How can we do a facepalm picture on the Cat?

  2. .

    Now Assistant Treasurer, he has announced that the carbon tax and the mining tax were such good ideas that an elected Labor government will reintroduce them.

    Surely Abbott can win this election now, given this?

    If they fire Loughnane and buy some decent ads and ad time, they can just hammer home the point ad nauseum.

    All they need to do in the meantime is balance the budget, cut taxes and repeal 18C.

  3. Bill Griffiths

    Hey Judith. We Cats here in Victoria are waiting for you to comment on Premier Dan’s abolition of the Construction Code, along with its Implementation Guide and the Code’s Regulator. Never mind Phil the Greek and the no chance of resurrection carbon tax. Dan’s handing the state over to the CFMEU.

  4. Nic

    He has an economics background? Surely he’d know that we are entering the downward part of a new cycle. His ideas will really help /sarc

  5. Rabz

    Labor – stuck on stupid.

  6. ChrisPer

    Nic
    #1582053, posted on January 27, 2015 at 11:07 am

    He has an economics background?

    LOL
    ALso a ‘clueless agenda-driven research’ background

  7. Fred Lenin.

    I totally agree with Dot ,this is an election winner if the left Libs have half a brain , thus should be in every speech the Libs make I am no speechwriter but I would be using the lines ,”if you. Elect green communist corrupt Union “labor ” ,you won’t be able to afford electricity. Petrol ,your food will be much dearer the mining industry will shut down unemployment wil be huge ,we will go down the Greek road to Hell ” . Pound the left mongrels with it ,each time they speak ask them how much more money they will borrow. Ask them how much they pay their public funded servants compared to real workers .pound the Bastardsstuff politeness you are dealing with scum here the dregs of the “unversitiesv”the ones who cannot get. Real job ,and when they are down kick the shit out of them ,no mercy. No prisoners .

  8. candy

    Stranger things can happen. They may quite well convince folk that revenue from carbon tax and proper mining tax will fix all the problems and provide for higher pensions, education and health unlike the mean nasty Abbott government. Why not? we have one term governments now and policies are put in and thrown out with gay abandon.

  9. candy

    What a smug face he has, though.

  10. blogstrop

    What a smug face he has, though.

    He’s from the ACT.

  11. lotocoti

    He is our very own Picrochole.

  12. Pete of Perth

    Must have photo-shopped out the head tilt.

  13. john constantine

    That is the point of shortens growth through regulation.

    Create vast herds of unionised public servants shuffling forms that require big companies to create vast unionised departments to comply with, as small non-unionised business goes broke and exhausted under the compliance burden.

    Go for growth through debt, it is only free government and bosses money, you deserve your fair share of it, get on the swampvote.

  14. Tintarella di Luna

    What a smug face he has, though.

    Tempting eh?

  15. stackja

    ALP voters are gullible.

  16. Percy

    All they need to do in the meantime is balance the budget, cut taxes and repeal 18C.

    This isn’t the time for radical ideas Dot. Pull your head in.

    (Ref: Sir Wayne Swan, Manual on Imagining Budget Surpluses).

    Bahahaha. Very good Judith.

  17. jupes

    Look at the carbon price. Sure, it was an important environmental measure …

    And it’s no coincidence that we had the HOTTEST YEAR EVER as soon as it was repealed.

  18. Bruce of Newcastle

    ABC24 doing its bit for the cause by headlining the news with da globul warming CSIRO study (amazing how these computer model studies produce lots and lots of ABC news reports but actual climate data never seems to).

    The irony is the weather pattern that is dumping buckets rain on me right now is the classic la Nina pattern, with a high pressure system down over Hobart sweeping onshore winds to the east coast. BoM as you all recall predicted a giant normal weak el Nino which has now turned into meh. A very la Nina-like meh here in Newcastle.

  19. Michelle

    Now Assistant Treasurer???? When the heck did that happen???

  20. Boss Hog

    What a bleak choice, come the next Federal election. Hobson’s choice in spades (mea culpa, a racist quip?).
    Either a totally stupid, totally inept (do-nothing) LNP which wants to procrastinate for another four years, or, a totally insane Labor party which wants to turn the country over to the North Koreans. Not much of a fall-back with the minor parties either: the LDP (which seems to comprise one ideologue and a fax machine) and whose witless mouthpiece wants Australian citizens to go armed to the teeth (that’ll fix it, eh Dave?), the PUP which hasn’t got much of a clue what it wants and the real joker, of course, the Greens which wants homo sapiens to commit ritual self-genocide and turn the planet over to the Dandenong amphipod: not much future there.
    Maybe radical Islam is a better alternative.

  21. Paul

    Might that more properly be “Shadow Assistant Treasurer”?

  22. Turtle of WA

    Don’t forget that for your average Laborite it’s enough to hate the ‘rich’ because they are ‘evil’, and to convince yourself that punishing them will make life better for everyone, end of story.

    Mining taxes and carbon taxes are symbols of hating the rich and redistributing their wealth. That they make life worse for everyone is an irrelevant fact.

  23. H B Bear

    The New Legover Man!!

    Will say or do anything for the Team. Embrace the Gillard-Goose legacy.

  24. Token

    Surely Abbott can win this election now, given this?

    If they fire Loughnane and buy some decent ads and ad time, they can just hammer home the point ad nauseum.

    All they need to do in the meantime is balance the budget, cut taxes and repeal 18C.

    You’d think that if there is one among them who is remotely competent they would demonise Labor day and night over this.

    Pity we know there is not one.

  25. Natural Intinct

    How come the ALP, and the media commentariat for that matter, have not figured out that mineral Royalties is a State matter – 100% as per the Constitution.
    And that the only reason there is a federal PRRT is because the drill holes are outside the 3 mile limit (boundary of states) but under the limit for the boundary of the country 12 miles and/or its EEZ of 200 miles.
    .
    Whatever tax revenue gathered by the Feds will have to paid back to the states first (as lost Royalty compensation) and then maybe anything any left over to Consolidated Revenue.
    And as the States have proven already, they can increase their Royalties as they see fit.
    It was just a ‘land grab’ by the Feds which will fail.
    .
    Now lets talk about horizontal and vertical fiscal equalisation, where the far Left agenda that every citizen is entitled to equal levels of government service no matter wehere they live, whether that be a CBD with all the benefits of scale and scope, or whether that be beyond the black stump where nothing is low cost.
    .
    Which nicely leads to the fact that Royalty rich states are hammered with less of the GST revenue pie. So why does a state not close down its mines and become ‘clean and green’ and then just wait for more GST to flow their way? Sound like Tasmania to you?

  26. john constantine

    You can imagine in your minds eye how abbott jollied along his family during the tumultuous hormonal teenage years.
    Absorb the abuse, in the belief that a good honest heart will be forgiven and loved again when the storm passes.

    Play fair and decent and it will all work out.

    These socialist fucks will kill you, and all you hold dear, stone motherless dead to progress international socialism abbott, fight or die–they will never be won over without lobotomy,and how do you even find a swampy hind brain to cauterise it?.

  27. Barry

    This is a surprise. Labor’s strategy normally is to buy their way into office and then set about their real agenda, which is to put the boot into the mainstream community. For example, who could forget Rudd’s ‘no change’ statement on illegals! And did you vote for 18C and immigration from violent societies and cultures? How about the attempt to further censor the media? Or the use of the treaty-making power to lock up land so it can be developed?

    All Labor has to do is shut their mouths and let Abbott shoot himself in the foot. Why are they saying anything? Has Labor hired the Liberals’ political strategists?

  28. Laurie Bell

    All the truly Funny Comedians have left the comedy circuit.
    They have all become Labor Politicians.
    Still, they can be seen in the comedy shows like “The Project” when they make guest appearances.
    Thanks for the Belly Laugh Andrew.

  29. Shy Ted

    Perhaps the new ALP election slogan could be, “It’s not your money, it’s ours.”

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