Packaged along with the much-ballyhooed “save the planet” carbon tax were some increases in marginal tax rates which the press went pretty quiet on. And although the tax-free threshold was raised, the LITO (low income tax offset) was actually reduced, which along with rises in the marginal tax rates for the lowest two tax brackets means that this is not such a good deal after all, especially for lower-income Australians.
I’m not an economist (and I don’t even play one on TV) so I’m linking you over to both Professor Sinclair Davidson’s reckonings at Catallaxy and Clinton Mead’s at the Australian Libertarian Society blog. As a layman I found Clinton Mead’s in-depth explanation and examples pretty clear and easy to understand – I recommend wandering over and having a look at both his post and the comments there.
In short, though, both economists do a good job of showing what the effects of the new tax scales and the alleged “compensation” will work out to for those on various incomes. And it’s not nearly as rosy a picture as the government or its cheerleaders in the lapdog media would have us believe.
In related carbon tax news, analysis of the latest opinion polls throws up a pretty surprising figure: 62 percent of 18-34 year olds are opposed to Labor’s carbon tax policy. Wait, what? If you only listen to the ABC and GetUp and its related pseudo-grassroots lobby groups, you get the distinct impression that it’s only the old fogeys who are opposed to this tax; that the Yoof are all hip & jiggy wit’ it. So what’s up that? Are we being fed yet another busted meme which is all about the narrative Labor and the MSM want to push but nothing much to do with reality?
Sinc has the full polling results here and they’ll be worth referring to later. As he points out, “Both these polls can be considered pre-policy announcement benchmarks. If Gillard is able to sell her policy to the public we’ll be able to see changes of opinion here.” So, bookmark ’em.
And also, just a memo to myself to remember to check out the Catallaxy blog more often, especially since I’ve pretty much gone off the comments thing at Bolt’s. Some really good voices over there, and it doesn’t seem to be over-run by astroturfers and trolls (yet!).
July 12, 2011, 5:56 pm at 5:56 pm
When visiting Catallaxy, just remember to set fire to some kittens.
July 12, 2011, 6:02 pm at 6:02 pm
Not till I see an estimate as to how much carbontax that’d set me back. I expect that setting fire to kittens is about to get a lot more expensive.
July 13, 2011, 1:00 am at 1:00 am
Oi! Kitteh is NOT impressed! Had to feed him canine testicles to appease his displeasure.
July 12, 2011, 6:02 pm at 6:02 pm
Spot, thanks for that!
I agree about the Bolt Blog – it just is no fun anymore, trawling through the flashcrap trolls, who for some reason are allowed to post repeatedly (whilst my comment is in hiatus for hours, or else posted and dissipated…) and totally hijack Bolt’s threads.
I’m afraid that Blair is going to suffer a similar fate, unless there is a wringing-out of editorial policies – i.e. bring back the fucking swear-jar, so that commenters can properly remonstrate these fucktard fly-by-night-and-crap-and-disappear trolls.
Gives me the shits, it does.
July 12, 2011, 6:21 pm at 6:21 pm
Yeah, some of us have been having kind of an ongoing whinge about the Bolt blog comments section for a while now – see here & here. I’m effectively banned these days – even when Bolt does the moderating late at night or first thing in the a.m. and lets my comments through, one or another of his moderators has a “thing” going and runs around deleting them all later in the day. And I’m not the only one by any means. All while the trolls and astroturfers get free rein. So, yeah – it’s kinda no fun over there anymore.
On the other hand, it’s always good to expand one’s horizons, and there seem to be a lot of intelligent and interesting people at both the ALS blog and at Catallaxy, so it might end up being a win in the end anyway.
July 13, 2011, 1:05 am at 1:05 am
Catallaxy’s great. C.L and Infidel Tiger ended up there. Remember Rafe used to help us out heaps here with links, but no one ever bloody checked the tizona emails, and possibly, no one even remembers the email p/w anymore.
July 13, 2011, 4:48 pm at 4:48 pm
We had emails???
hmmm, maybe I should investigate this “blog” thing more….
July 12, 2011, 6:06 pm at 6:06 pm
At least my comgen icon is a PENTAGON, unlike yours, which seriously looks like a “stop” sign………
July 12, 2011, 6:29 pm at 6:29 pm
National Union for Students released a statement. Students Set to Benefit from Carbon Tax Package.
“Students on Youth Allowance will benefit from the increase in payments of 1.7% p/a, and all students will benefit from the raising of the tax-free threshold to $18,200 from 1 July 2012”, said Jesse Marshall, National President of the National Union of Students.
July 12, 2011, 7:13 pm at 7:13 pm
The dole-bludgers will certainly benefit – they’re about the only group who’s guaranteed a win. The least-productive will be the most-rewarded in this blatant income-redistribution scheme – that’s the Labor way.
As for the true effect of the increase in the tax-free threshold when taken into consideration with the other factors, see the Catallaxy & ALS posts. In his example, for instance, Clinton Mead shows that someone on $37,000 will see their tax bill go up by almost 7% in 2012/2013.
July 12, 2011, 7:23 pm at 7:23 pm
I’m beginning to think that Australia has finally become a socialist nation.
July 13, 2011, 1:13 am at 1:13 am
Not having a go at you, GG, but fuck me sideways and call me frank, that certainly doesn’t come as a surprise.
The “price” of dope won’t go up, but the baggies will get smaller.
July 12, 2011, 7:15 pm at 7:15 pm
Did the NUS calculation include the added electricity costs for students?
July 12, 2011, 7:30 pm at 7:30 pm
Yes. I’m sure they included a birthday cheque from grandma to help pay for electricity. LOL
July 12, 2011, 9:22 pm at 9:22 pm
I sent this to bing:
July 13, 2011, 1:15 am at 1:15 am
And I blogged it, tweeted it, and included your email comment.
July 12, 2011, 9:38 pm at 9:38 pm
5 Easy Steps? http://www.youtube.com/watch?v=weVU0-fEvjc [Like the spin of taking the politics out of climate change?]
July 13, 2011, 12:38 am at 12:38 am
Biased perhaps, but the analysis of the Lib’s new young student prez went pretty well.
July 13, 2011, 12:44 am at 12:44 am
And the Greens want $200 a tonne. By definition of how this tax is to work, about $200 is where it will have to be at.
The silver lining is that when it goes to a
freemarket based funkathon, it will collapse.
July 20, 2011, 12:55 pm at 12:55 pm
Those are very useful links, thanks for sharing them. This “carbon tax” just looks worse and worse the more you find out about it!
August 13, 2011, 10:24 pm at 10:24 pm
This is retarded, the only ppl the carbon tax is going to cost is the biggest polluters, and everyone except the filthy rich will get compensated, in fact most will come out ahead.
Unless your a big polluter or someone whose filthy rich and doesn’t want to pay your Fair Share, it’s all good.
August 14, 2011, 8:12 am at 8:12 am
Roy, I don’t mind paying my fair share. What I do mind is that Gillard and Swan stated flatly that there would be no such tax before the election. Swan even mocked the Opposition for warning it might happen.
Their attempts to sweeten the message have only left me more dubious. As spot has said many times, they think it’s all about finding the right wrapping paper for their gift. It doesn’t change the fact that their gift is a stinking turd.
Finally, given the government’s track record under Rudd and Gillard, I see no reason to believe that any number they quote today will be relevant after the tax is initiated. Gillard couldn’t manage the BER; Rudd’s numbers on the ETS were equally dodgy.