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Argument Claim: No, Australia should not reintroduce the carbon tax., The…
Argument Claim: No, Australia should not reintroduce the carbon tax.
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Political
Party Polarisation
Implication: Political parties in Australia don't have consensus on climate policies, so introducing a tax will be politically unstable
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Public Opposition
Implication: Public opinion on carbon tax changed after the carbon tax in 2012 increased the cost of living, so reintroducing a tax may lead to similar outcome in the future where people will demand the removal of the tax*
Limitation: The government may have a way to change public opinion so that they support solving climate change by, for example, education
Political Philosophy
Implication: Carbon taxation contradicts capitalism, and therefore will not be effective in a capitalist democracy where people will not want to impose a cost on themselves
Limitation: Carbon may utilise the free market ideology to promote clean energy by allowing clean energy companies to make more profit
Economic
Labor Market
Models for other countries show that jobs are shifting from the dirty to the clean sector. But, aggregate employment was negatively affected during the period when the tax was implemented. According to some business executives, the tax was "the straw that breaks the camel's back".
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GDP
Models for other countries show that GDP is unaffected by the tax. But, models for Australia show that GDP could be hurt.
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Faliure to recycle
Australia failed to recycle the tax's revenues during the period when the tax was implemented. But, according to statistics, tax recycling is an essential element to any carbon tax proposals.
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Conclusion
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Long term: Maybe, let's wait and see.
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The Labor acknowledges the long term damage that climate change can bring and thus supports climate action
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