Carbon tax penalises the wrong people

Today Brumby’s, Australia’s largest bakery chains told franchisees to increase costs due to the carbon tax.  I heard this story on 702  ABC Sydney Radio, and was listening with interest. Ever since the government announced their carbon tax, I knew it would jack up prices for the average person, and also with other essentials – electricity, gas and probably others I don’t know about.

I must say that I really don’t fully understand the whole carbon tax issue or the ins and outs, the following article by The Sydney Morning Herald titled, “Carbon tax explained” will hopefully help you and also me.

From what I gather, the biggest polluters will be charged to lower their carbon footprint. To do this they are taxed. However this tax then flows on to the average person, this in turn has upped electricity costs by 20% from the 1st of July 2012, so exactly 3 days ago now.

The government is going to be compensating households with the extra costs, but only if you are eligible, to find out if you are eligible for help, go to The Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) – Household Assistance Package.

One issue that I have with this tax, the government is taxing the businesses that are polluting, then the cost of services go up, the cost of goods, food and everything is going to go up. To win support for this the government gives the average family some money to help, however I don’t believe this will be enough as costs will sky rocket and not everyone will qualify.

What is to stop organisations like Brumby’s putting up prices? Who knows what other companies have already done so and not been noticed? How about this for a radical idea, don’t put costs up and then we will not need the assistance package. If they keep costs the way they were, the average family will not need more help to pay bills and the much needed heating bill in freezing winter.

I do understand that we have to make sure companies don’t pollute, however I think that the carbon tax is going to penalise the wrong people, the people with no money who are just trying to provide for their family. Maybe I don’t understand the tax very well. If I am missing something please send me a comment and let me know what I am missing.

What are your thoughts on the carbon tax? How about organisations increasing prices for their products, especially bread? Bread is a staple that should be equally available to all not a costly item. Send in your comments.