Listening to today’s debate on repeal of the carbon tax, I was astonished to hear the government tell the opposition that the carbon tax adds to production costs.

Yes, yes!  A very good point, Prime Minister!  Indeed, ALL taxes add to costs. I hope the Opposition was listening to this salient point.

Whilst it could be argued that–like taxes on cigarettes–taxes on pollution should provide a salutary warning to polluters, the point remains:  ALL taxes DO add to costs, and get passed on in prices …. right throughout the economy.

But revenues drawn from rents on natural resources and government-granted privileges DO NOT add to costs, Prime Minister (and Leader of the Opposition). They REDUCE them! Do you understand this critical difference, gentlemen?

If NOT, you’ll continue to scratch your heads about the faltering Australian economy.

If you DO, there may be hope for Australia and Australians yet!

So, onward, Tony Abbott …. now for the abolition of the GST and income tax – surely more damaging to Australian society than the tax upon carbon pollution?