ETS - smoke and mirrors !

The government claims that low income families will actually be better off financially from the introduction of it's Emissions Trading Scheme ( ETS ).

Anyone that actually believes that must still believe in the Tooth Fairy !

According to the government, 2.9 million low income households will be better off by $ 190 a year. Costs will increase by $ 420 a year, but they will be compensated by grants of $ 610.

That may be so if the only factors taken into account are increased gas and electricity prices, but the ETS will apply across the whole spectrum of manufacturing and services. It will have impact on grocery prices, council rates, car expenses - in fact on every aspect of everyday living.

The government is trying to pull a huge con on the public. It admits that middle income people will only be partly compensated - and that ETS will soak the rich - but claims that " the little people " have nothing to worry about.

For how long ?

The aim of ETS is to increase the cost of those activities that generate carbon to ensure that industry moves to more expensive methods that generate less carbon. Because of the tax - these more expensive methods will bring long term benefits.

So - we pay more because the people who provide the goods that we need have an increase in costs !

The obvious question to ask is " Where does this compensation money come from ? "

Because ETS is a new tax it will be a source of income for the government which allows compensation for the more obvious immediate cost increases - gas and electricity - but can do nothing for the general increase in costs that will occur across the board.

When it comes to tax - enter the wide world of smoke and mirrors.

And remember that adage - " Never give the suckers an even break ! "