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High Risk Tactics As Labor Scraps The Carbon Tax

The Red And The Blue

AT FACE VALUE, an announcement this week that Labor will junk the carbon tax — as it desperately tries to clear the decks for an election — would seem a shrewd move; but it’s not so straightforward, and could inflict a terminal hit on Labor’s election prospects if properly handled by the Liberals.

Reports out late last night (in time to make this morning’s papers) confirm that the Rudd government will shortly announce the premature abolition of the carbon tax, along with an earlier-than-planned move to an emissions trading system, effective from 1 July next year.

The move, rather obviously, is an attempt to kick one of the pillars on which the general Coalition attack rests out from under it: the hated carbon tax, introduced by Julia Gillard in a cavalier breach of an explicit election commitment that arguably swung the outcome of the 2010 election in the final week…

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