Tag Archive: Taxes

USA – Refuse Even to Fund Crumbling Highways

US highways are in a bad shape, one out of nine bridges are “structurally deficient”. Some 40 years after being built, upkeep is getting more expensive while available funding is decreasing. Due to falling mileage and better fuel efficiency of US cars, the 18.4 cents fuel tax per gallon is yielding less and less money. Between 2007 and 2010 the highway trust fund received one-seventh less money. At the same time, nobody seem to be prepared to pay more fuel tax and politicians don’t even dare thinking of it.
On the first sight it may be a surprise that car …

Carbon Tax – Australia’s Bright Move

Motivated by the green party on whose vote she relies in the parliament, Australia’s prime minister Julia Gillard tackles Australia’s position as the global top per capita greenhouse gas polluter. A carbon tax of 24US$ per tonne will be levied on the countries 500 top polluters. Half of the raised money will be redistributed to the population in order to compensate rising energy prizes, an additional 40% will be spent helping companies to adjust to modern energy and carbon saving and measures. Consequently the government also aims at reducing Australian carbon emission by 80% by 2050 joining other countries …

How to Finance Climate Change Mitigation and the Energy Transition

Developed countries have pledged US$ 30bn until 2012 and US$ 100bn until 2020 for mitigating climate change. In all likelihood and considering the dire state of many public finances, a promise involved politicians don’t expect to keep. Therefore, the question arises where the money could come from. A surprising yet intriguing suggestion is put forward in a report by the World Bank. Cutting US$ 40-66bn of annual fossil fuel subsidies in OECD states and investing them into financing climate change mitigation measures would not only cover the better part of the pledged money but also foster economic efficiency and of …

UK – Tax Breaks for Wasting Energy

The UK has ambitious plans for reducing greenhouse gases  and Prime Minister James Cameron aims to lead the greenest government ever. However, a report of the OECD highlights some major inconsistencies in British environmental policies, namely in the way energy is taxed. While pushing for substantial reductions of CO2 emissions (-20% until 2020) VAT for energy is still only 5% compared with 20% for other goods.
Quiet unlikely that this tax scheme will incite any households to save on energy, invest in insulation or renewable energy. If they become more energy-efficient it is to the contrary despite of UK tax …

CO2-Taxes in Canada – It Works

According to Stephen Harper, Prime Minister Taxes on CO2 and higher energy prices screw everybody. Well, apparently not British Columbians. Three years ago the Canadian province introduced a gradually rising tax on CO2 emissions and thus energy while redistributing the additional money back to the people by lowering income taxes. Heavy polluters had to pay more and energy efficient people and companies enjoyed a net benefit. Now first conclusions can be derived and guess what? British Columbians not only have lower CO2 emission than the rest of Canada, but they have also lower taxes and a strong economy. No …