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2011-04-11

Compensations for businesses and consumers for carbon tax

Comments on Dennis Shanahan “Pressure mounts as industry speaks out” 11/04/2011, http://www.theaustralian.com.au/national-affairs/commentary/pressure-mounts-as-industry-speaks-out/story-e6frgd0x-1226036933238

There are a number of interesting questions:

1. Why do some people including businesses continue to talk as if Australia is indeed 'go it along', given that many countries have done much more than us already?

2. Even assuming a $25 per ton carbon tax, it is likely to fall below the real effect of the CPRS cap due to the government and Treasury miscalculation of that carbon price under the CPRS, so why they say the compensation levels to businesses designed then were out of date?

3. For some energy producers like LNG producers especially exporters, how much emissions do they produce directly in their production processes and how much carbon tax they have to pay for those emissions?

4. Given that many businesses can pass on part or full carbon tax, and consumers can't, so how much businesses would expect consumers should be compensated, if they think the compensations under the CPRS design are not enough for them?

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