I wonder if the government will listen as intently to the Productivity Commission now as it did when the Commission was providing support for the carbon price:
THE Productivity Commission chairman, Gary Banks, has sounded a warning to the government against using the tax system to change community behaviour in areas such as gambling, road congestion and carbon pollution.
Speaking at the end of the first day of the tax forum in Canberra yesterday, Mr Banks warned that raising taxes to change behaviour had to be done in “the right way to the right extent”.
“That is very hard,” Mr Banks told the forum. He argued that much of the detail on how to change behaviour with taxes was “unresolved” and risked authorities’ ability to convince the community that the taxes were worthwhile.
On carbon pricing, Mr Banks said “the complexities are unbounded” and a key challenge for the government would be reviewing which of the 200 other climate schemes around Australia “deserve to stay and which of those deserve to go”.
His comments echo the Productivity Commission’s findings that state climate change schemes such as solar feed-in tariffs were greatly increasing the cost of carbon emissions abatement.
Taxes really don’t change people’s behaviour – people will just use more of their disposable income to maintain the status quo.
Read it here.










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