“Garnaut puts Tony in a spot of bother” says Megalogenis

George Megalogenis has a very good analysis piece in the Australian (Weds June 1)

ROSS Garnaut plans to return Labor to its reforming roots with a kitchen-table surprise for Tony Abbott. Pensioners would receive their compensation ahead of the introduction of a price on carbon so they would not be caught short when their first elevated power bill arrived after July 1 next year.

This measure echoes the approach John Howard took with the GST in 2000, and poses a dilemma for the Opposition Leader to defeat a carbon tax at the next election, he has to promise to reduce pensions before the mooted cost of living pressures are fully felt.

and this

Nevertheless, the Garnaut advice contains a policy trap for Labor. It connects the revenue from a price on carbon to the Henry review’s goal of increasing workforce participation. But increased workforce participation was meant to be the centrepiece of last month’s budget, as well as the proposed tax summit later in the year. What will Wayne Swan have to talk about at the summit if he takes up tax reform now?


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