He said profits increased, not revenue, so yea, an effect, a positive one it seems.
please tell me in what way someone will increase their profits without an increase in revenue when coupled with a rise in costs
It is in no way logical to conclude that the carbon tax has had a positive effect on a business just because profit has gone up since the tax was implemented.
Also lolsmith I think you are incorrectly making the assumption that he is telling the truth about anything.
I was operating inside a hypothetical situation assuming that he was telling the truth (this means that it doesn't matter whether or not he is) and extrapolating a point from that. I don't know why you struggle with the concept of hypotheticals.
If we assume he's telling the truth (big assumption) he said profits increased but has been complaining that the carbon tax is hurting them. If profits have increased the net effect of the carbon tax is positive or has no effect at all.
Do you have an idea what "costs" are? Like I said above, just because your profits increase in the onset of a new (incredulously complex) tax, does not mean in any way whatsoever that it is due to that tax. That being said, there can still be a negative, (and this is important) regardless of how negligible it is, result from that.
Also before you say that maybe his profits have increased for other reasons - they could be higher without the tax - one assumes profits have gone up because the prices charged have risen greater than the cost of inputs. The carbon tax provides the opportunity to gouge beyond what they normally might or could - so it is the underlying reason.
No it isn't. That's not a fair or logical conclusion to come to. Just because you've discovered a situation that confirms your bias, doesn't automatically cancel every other circumstance. What if he maintained his prices and increased sales? What if he raised prices relative to his cost rise as well as increasing sales?