Originally Posted by
inthebox
So, let me get this straight, you can tax your way out of a poor economy? Has this happened in the past?
Okay, so they tax mining, their cost of business increases and so they don't hire new workers or they lay off workers - how is that helpful to to the economy? If the cost of providing a service or good goes up, that cost gets passed on to the average person as a higher price. How is higher utility cost suppose to increase consumer confidence or spending? Is that good for the economy? How is a business that now has to pay higher utility costs able to
hire new workers or be able to keep the ones they have? Is this economically good?
The ripple of bad economic effect will turn into a tidal wave that will further weaken the economy. F...g idiots.
G&P
You just don't understand the theory, they taxed the oil industry twenty years ago, no new oil was found but exploration found gas, almost as good and bringing plenty of investment. The theory is tax iron ore and coal this will bring massive investment,
In the cap and trade theory this is how it works tax the "polluting" industries and this causes investment in alternative industries or industry pays the tax which is returned to the consumers who have to pay higher electricity prices. Either way there is a huge cash flow headed the governments way and of course they will keep some of it
A few years ago we introduced an new tax called the GST, a consumption tax, primarily to trap those who weren't paying income tax this has been a growth tax far exceeding expectations and the economy has grown at the same time so the theory goes the more you tax something the greater the economic effort
This is the reverse of all logic and economic theory but it is at the centre of Krudd reasoning, why else would it be Krudd? All of this came out of a recent tax review and the government couldn't wait to implement it. As soon as the report was released, the tax was announced.