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If there is any vestige of democratic socialism left in Labor, the Gillard Government needs to raise taxes without apology, knowing its social welfare policies are just and necessary. It also needs to remain committed to redistributing wealth to eliminate huge discrepancies in living standards.
The Government's theoretical model does not stand up to scrutiny in the real world. Collecting higher taxes from the mining industry to disburse for other worthwhile purposes may be perceived as contributing to the 'common good'. In fact, the reverse could be true.
Both the Federal Government and Opposition have proposed easing the pain of ballooning petrol prices with flat tax reductions. However they would be doing us more of a favour if they treated oil dependency as an addiction, and imposed extra taxes that would further increase the price of petrol.
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