Carbon Tax in Australia

Carbon emissions during recent decades have generated much controversy and some communities have taken harsh measures in order to combat effects associated with the process. The Australian Federal Government introduced a carbon tax of $23AUD per ton of emitted carbon dioxide on a series of fossil fuels in order to effectively deal with pollution. Finances gained from the process have been used to reduce income tax and provide Australian citizens with several benefits. While the legislation has been welcomed by many local and international bodies, some have frowned upon it and have called for its repeal on account of how it produced much damage both on a small level by increasing cost of living and on a larger level by preventing businesses from being able to experience progress.

Tony Abbott's article "THE COALITION'S PLAN TO ABOLISH THE CARBON TAX" is among the most recognized criticisms regarding the carbon tax in Australia. The Leader of the Opposition emphasized how the tax seriously affected the Australian economy and how it fails to address numerous problems that it was actually meant to solve. Looking at matters from this perspective certainly makes it possible for one to acknowledge the ways that the tax harms the Australian community.

While Abbott's text might be regarded by some as being propaganda and as being an attempt to get more support from the public, the leader of the opposition nonetheless seems to be convinced that the tax is responsible for harming the idea of freedom in general. "Repealing the Carbon Tax will ease cost of living pressures on families, help small business and restore confidence to the economy." (Abbott) Abbott really seems to relate to some important ideas concerning the tax, but it is difficult to determine if repealing it is actually going to help Australians in general.

More and more international players are getting involved in implementing legislations meant to control carbon emissions and this has practically come to be an important factor making particular nations seem more respectable. Carbon emissions are often directly proportional with profits and this influences many companies to express lesser interest in their emissions and more interest in their profits. As a consequence, many regard carbon taxes to play a significant role in discouraging business owners from keeping their enterprise. Small businesses often go bankrupt because they cannot afford to produce as long as they are obligated to stay within emission borders that seriously prevent their ability to function.

Restricting emissions has become a main goal for many nations during recent years as pollution has been associated with significant problems, ranging from climate change to individuals experiencing health issues as a result of breathing polluted air. Carbon taxes are thus welcomed by many and considered to be one of the main concepts standing between abusive companies solely interested in profits and society's well-being as a whole.

Carbon taxes are certainly efficient in preventing further damage to the environment but, as pointed out earlier, they can have a particularly negative effect on a community's potential to experience economic progress. Governments thus have to consider a multitude of factors before passing a carbon tax and it is only safe to say that Australia's carbon tax is, to a certain level, an experiment. The fact that it is relatively new makes it possible for one to understand that the federal government had a limited understanding of the exact effects that it would have on the Australian community.

Many Australians are inclined to believe that the carbon tax only harms businesses and that normal individuals are unaffected as a result of this respective legislation. "The Abbott government insists the carbon tax will end on 1 July next year even if the parliament has not yet repealed it but leading lawyers say companies would still be liable and should continue to pass the tax on to their customers." (Taylor) The reality is that the tax affects everyone, taking into account that companies have to increase their prices in order to be able to keep part of their profits.

The Australian society as a whole has experienced a series of economic issues as a result of the carbon tax being implemented. Individuals like Abbott lobby against the tax both with the purpose of having the masses understand the degree to which the tax affects them personally. "On average, households will be around $550 better off in 2014?15 than they would have been with the carbon tax in place. This is about taking the pressure off electricity and gas bills." (LEGISLATION TO REPEAL THE CARBON TAX)

The main point is that removing the carbon tax is most likely to improve the Australian economy. With countries like the U.S. And China continuing to express little interest in carbon dioxide emissions, it seems like communities from around the world practically have to choose between damaging their economy or damaging their environment (Gardner). While the former seems like the moral way out for most people, the truth is that the latter seems much more effective when regarding matters from a financial point-of-view.

The Australian carbon tax has had disastrous consequences on the country's economy. Moreover, it appears that the majority of Australians were able to predict this and actually opposed the tax. "A June 2011 poll revealed that almost 60% of Australians opposed the tax, while just 28% favored the scheme (the rest undecided)." (Bell)

All things considered, it is difficult to determine whether the tax was actually a failure. The truth is that it is perfectly normal for someone to support the repeal when considering the consequences that the tax has had on the Australian society. However, the tax itself should be praised on the role that it played in having people understand how important it is for them to fight pollution. Carbon dioxide is becoming more and more of a problem in the contemporary society and legislation such as the Australian carbon tax seem to be the best solution. Even with this, the only solution for the Australian public to avoid suffering more harm as a consequence of the limitations the tax imposes would be for it to be repealed.

The federal government would have to find a balance between the carbon tax and an instance in which carbon dioxide is no longer taxed. The gas is certainly responsible for much of the environment's deterioration but control needs to be exercised one step at a time rather than suddenly. While it is pointless to discuss whether or not individuals like Abbott are trying to take advantage of the situation with the purpose of gathering voters, the truth is that the carbon tax in its current form is seriously damaging the Australian society and needs to be repealed.