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Carbon tax will send fuel and heating bills soaring [Copy link] 中文

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Post time 2010-3-26 05:34:22 |Display all floors
Carbon tax will send fuel and heating bills soaring

By Paul Melia

Wednesday July 29 2009

HOMEOWNERS can expect the cost of heating their homes and fuelling their cars to increase by hundreds of euro a year if the Government introduces a carbon tax in the December Budget.

The ESRI said yesterday that if a carbon tax of euro20 per tonne is introduced, householders should expect a sharp rise in their annual fuel bills -- but that the money raised should be used to reduce income tax rates.

Up to euro500m a year would be generated through a carbon tax, it said, but the revenue should not be used to top-up depleted Government coffers.

Instead, the economic think-tank says the money should be used to reduce income tax rates and PRSI levies to help restore Ireland's competitiveness.

"Revenues should be used to offset income or labour taxes to aid competitiveness with a share set aside to help the vulnerable," the authors of 'Policy Options to Reduce Ireland's Greenhouse Gas Emissions' said.


"Experience with this approach elsewhere has been favourable and widespread adoption would be ideal."

ESRI economist Sue Scott yesterday said that a carbon tax of at least euro20 per tonne was needed to change consumer behaviour, and that using such a tax to reduce labour taxes had been done in the UK and in a number of EU countries.

The tax, expected to be recommended by the Commission on Taxation when it reports to Government next month, would see householders and businesses charged a tax for using fossil fuels including oil, gas and coal which lead to carbon dioxide being emitted -- the primary cause of climate change.

But an analysis of the impact a tax would have on households says that the cost of heating a home and fuelling a car would rise substantially, particularly for householders using oil instead of gas.

The price of 1,000 litres of home heating oil would rise by almost euro54, or 10pc. The annual gas bill would increase by over euro40 and car fuel bills would rise by at least euro70 per year. Using peat briquettes and coal in open fires would also put pressure on family budgets.

Energy Minister Eamon Ryan would not comment on whether a carbon tax -- a key Green Party policy -- would be introduced in next December's Budget.

But he said that the Government should not look to add to the tax burden on workers.

"We do have to meet our budget target," he said. "We have to get euro4bn in savings this year and next, after that there's a combination of measures on capital and current spending.

"We shouldn't be looking to put more taxes on labour. In terms of the other measures in the Budget we'll have to wait and see."

The carbon tax would affect businesses as well. Dublin Bus, which uses 36 million litres of fuel each year, would have to pay euro1.8m in a carbon tax every year, which could lead to fare increases. Iarnrod Eireann said that a carbon tax would have a far greater impact on private motorists, and that if there was an additional cost it would have to be factored into fares.

Airlines, ferry companies and electricity generators would also be affected, meaning that price hikes across the board could become a reality.

Ireland faces legally-binding targets to reduce the amount of carbon dioxide it emits from 70.3 million tonnes in 2005, to at least 56.3 million tonnes by 2020.

We will reach interim 2012 targets of emitting no more than 62.7 million tonnes of carbon because of the economic downturn, but achieving the higher 2020 targets is "unlikely without new policies", the ESRI says.

A number of approaches could be used to reduce our carbon dioxide emissions. Introducing regulations which could compel government departments and businesses to reduce emissions or face legal sanctions; improved building standards to improve insulation; reducing commuting; and introducing subsidies to encourage research and development.

- Paul Melia

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Post time 2010-3-26 06:05:25 |Display all floors
The above article refers to Europe. By the same arguments, Chinese in China would face the same shocks as those described above!

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Post time 2010-3-27 08:11:20 |Display all floors
Reminder: Author is prohibited or removed, and content is automatically blocked

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Post time 2010-3-27 17:24:28 |Display all floors

Reply #4 seneca's post

Simple logic. You don't decapitate your own head just because you are suffering from a acute migraine! Or you do?

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Post time 2010-3-27 18:23:44 |Display all floors
I must echo that: so what?
"Justice prevails... evil justice."

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Post time 2010-4-1 04:57:34 |Display all floors
Organized Crime in Charge of EU Carbon Trade,

Europol Says

Report by Raymond Frenken, EUX.TV

First, there was ClimateGate - the scandal with hacked emails suggesting scientists have abused data for research on global warming. Now, another international climate scandal is emerging that may have an impact on the talks in Copenhagen.
Europes top police body Europol, the closest thing that European Union has to the American Fbi, has exposed a massive fraud with the unions official market in carbon credits, the Emission Trading System.
The fraud is costing tax payers in a handful of European countries more than five billion euro - 7 billion dollars - and raises doubts about the effectiveness of carbon trading as a measure to curb emissions.
Europol director Rob Wainwright issued the following statement:
These criminal activities endanger the credibility of the European Union Emission Trading System and lead to the loss of significant tax revenue for governments.
Police authorities in Belgium, Denmark, France, the Netherlands, Spain and the United Kingdom have worked together in what Europol calls a process to identify and disrupt the organised criminal structures behind these fraud schemes.
Lets see if we can explain the scheme, using this graphic provided by Europol.
The fraud is based on a what is tax experts and investigators call as a Carroussel fraud with missing traders. This carroussel generates money by stealing value added tax from governments.
The first step of the criminals is to open a trading account with a national carbon registry, in the name of a newly registered company.
From there, this company buys EU emission allowances in another country on one of the six official carbon exchanges in Europe.
After that, these emission allowances are moved to another country, and subsequently sold to an unregulated broker in yet another country.
This broker then charges VAT on these transactions but does not pay the collected VAT to the tax authorities.
Just before the tax authorities realize that this company owes them huge amounts of VAT, basically a period of a few months, the company and its owners disappear.
A new company is set up, using other front men, to repeat the carroussel. Crime rings that run such schemes can have several dozen or hundreds of companies whose real owners are difficult to trace.
Basically, this type of fraud is possible because European countries continue to disagree on single market tax legislation. Carroussel fraud is a constant feature in the European cross-border market and until recently only happened with shipments of valuable goods such as iPods or flat-panel tvs, not with carbon credits.
Europes tax commissioner, in an interview with EUX.TV, has estimated the damage from these carroussel frauds at more than 60 billion euro per year as Euroean finance minister continue to disagree on effective measures to fight this fraud.
The Emission Trading System system was set up in 2005 as part of Europes efforts to curb emissions of greenhouse gases. That topic now is at the top of the agenda at the UN Climate summit in Copenhagen this week and next. This unprecedented and massive fraud is likely to prove a major embarrasment for EU negotiators.

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Post time 2010-4-1 08:23:56 |Display all floors
Don't worry. Since you enjoy taking in my farts, I'll consume my onion to oblige you. Don't forget to take deeper breath. Don't waste! I fart only for you to consume!            

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