Economics of Liberty

Is a Carbon Tax a War on the Poor? (VIDEO)

Host of The Big Picture Thom Hartmann invited The Libertarian Republic editor to discuss a proposed carbon tax on the energy industry. Hartmann believes that it’s time to start making companies pay in order to pollute. In the six-minute interview below, Austin Petersen confronts Hartmann with the fact that a carbon tax is regressive, meaning it hurts poor people the most. [contextly_sidebar id=”7956176ce947b5cf74eca2515da93d7a”]

Poor people pay a greater share of their income for necessities like gas and food. A carbon tax would require them to pay even more to heat and light their homes. Corporations don’t pay taxes, they simply pass the costs of doing business on to the consumers.

Australia’s new government has announced this week that killing their carbon tax is their first priority, due to the economic devastation that it has brought on. Despite a carbon tax of $37 a ton by 2020, Australia’s domestic emissions were going up, not down. The new Prime Minister recently stated that the tax was “socialism masquerading as environmentalism”.

study by Dr. Alex Robson, an economist at Australia’s University of Brisbane found that the tax was contributing to a record 10,632 businesses facing insolvency in 2012, which is up from 10,481 for 2011.

The country’s hospitals were also being negatively affected. The Herald Sun reported that many Victoria provincial hospitals spent an extra $6.1 million in energy costs in just six months due to the carbon tax. The carbon tax made up an unbelievable 8-22% of the hospitals’ total energy costs.

So if turnabout can be fair play, we just have to ask: Why do left wingers hate poor people?