Monday, July 2, 2012

Carbon Tax Dumb #1



Business Person A - "I have to put my prices up by 10% because the Carbon Tax is increasing my power bills by 10%"

Well no, it turns out that unless you are a power company, you aren't selling power as your product. So actually, whatever percentage the power usage is of your product, it will go up 10% of THAT.

eg: The guy who said his power bill was going up 10% and that electricity was 20% of his costs...guess what, 10% of 20% is 2%.

On average the rise in costs is 0.7%, so if your electricity bill is 20% of your costs, then you are probably a business who uses a reasonable amount of electricity and therefore you are supposed to incur a "hit" of sorts.

Why? So that you can perhaps work better? Smarter? More efficiently? Look for renewable energy options?

THAT is why there is a Carbon Tax.

3 comments:

  1. Excellent post. Next, PLEASE explain why it's not a tax... people don't get it.

    ReplyDelete
  2. Flamin labor ruining Australia as per usual, wait until I get them to my rape dungeon.

    ReplyDelete