Don't ask carbon tax to do too much

Comments on Robert Gottliebsen “Our carbon bubble danger”, 4/08/2009, http://www.businessspectator.com.au/bs.nsf/Article/Our-carbon-bubble-danger-pd20090804-UKT7J?OpenDocument&src=sph

While the merchant baker’s idea of a revenue neutral carbon tax and tax reduction on consumers sounds attractive, it may be difficult politically. One of the main difficulties might be how to cut income taxes and raise social benefits. Different implications may render the carbon tax as a revenue grab by some to derail the carbon tax scheme altogether.

It may be a long term policy goal, but in the shorter term, it is better to focus on using the tax collected from carbon to fund other energy alternatives, or address some transitional issues.

Don’t attempt too much at one go and be practical about political processes.