The Forum > General Discussion > Why the tax is wrong
Why the tax is wrong
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What they fail to take in to account is the fact that if a business has to find additional funds, be it for tAxes, wages, fees, anything, the business expects to get more than just their money back as they want a return on their additional investment, and who can blame them for that.
The government mean Tim expects these businesses to fund the additional tax and at best pass the costs on, however, they will pass the costs plus funding costs plus a margin on to the consumer.
This tax will have dire effects but I doubt it will get through, however, it is just one more example of how poor policy can rock the confidence of business and for that, we should all be worried.
It's all well and good to feel warm and fuzzy, but is it worth the risk as it is said that AUs contribution to co2 is likened to a single hair on the gateway bridge.
Government may be happy with a cost recovery policy, however, business does not work like that.
As this extra cost gets passed around each effected business will add their margin and the end user will pay big time.