<
https://reneweconomy.com.au/tax-excess-profits-higher-taxes-not-subsidies-could-be-key-to-solving-energy-crisis/>
"Imposing new taxes on the windfall profits earned by fossil fuel producers on
the back of surging energy prices – rather than further subsidising energy
costs – could be the key to solving the current energy crisis.
Speaking at the Australian Energy Week conference on Thursday, ANU economist
professor Frank Jotzo said the direct subsidisation of energy costs was not an
efficient way of improving outcomes for energy consumers, and governments
should instead look to tax “excess profits”.
Jotzo suggested that a more effective way to drive investment in new energy
infrastructure and to lower costs for consumers, would be for governments to
use potentially higher tax revenues to fund measures like energy efficiency.
“On the radio the other morning, you could hear West Australian ex-premiers
saying, ‘Weren’t we smart to put a gas reservation policy in place?’ Yes, of
course, that reduces the cost of gas to domestic consumers,” Jotzo said.
“A much better version to achieve a similar outcome in the end is to let the
international price prevail, but tax profits. We really falling far short in
this country in properly taxing resource excess profits.”
“But, economically speaking and also in terms of overall community interests,
this is where it needs to go.”
Jotzo said imposing a tax on the resources companies making excess profits
could provide governments with funds that can be used for re-investment in new
energy saving measures.
“When you’ve got the revenue, you can allocate it flexibly. Allocate it to low
income earners, as a winter heating and electricity subsidy as a short term
measure. It’d be politically popular as well,” Jotzo told the conference."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
