Australia's Carbon Tax

Australia is set to tax carbon, or at least the worst polluters. The tax will go into effect on July 1, 2012.

" Australia will force its 500 worst polluters to pay 23 Australian dollars ($25) for every ton of carbon dioxide they emit, with the government promising to compensate households hit with higher power bills under a plan to reduce greenhouse gas emissions unveiled Sunday."

"The government hopes businesses affected by the tax will seek out clean energy alternatives to reduce their bills. The affected companies will have to pay AU$23 per metric ton of carbon, with the price rising 2.5 percent a year until 2015, when the plan will move to a market-based emissions trading scheme."

On a per captia basis, Australia is one of the biggest polluters in the world. Critics of carbon taxation
argue that this is just another tax grab by big government while environmental groups question if the tax goes far enough.