POLLUTION IS FREE
Is it better to pay taxes on income or on pollution?
For 40 years, Canadian environmental law has tried to defeat economics. That is, we have forbidden people and businesses from doing things that save them money, and commanded them to do things that cost money. In the circumstances, it's amazing that we've accomplished so much: air is cleaner, rivers are healthier, smokestacks no longer belch choking smoke. But the urgency of climate change is just more proof that we must do more, and quickly. And for this, we need better tools.
Good tools make a job feel easier; bad tools (like conventional regulation) make it hard. And, often, the best tools are the simplest.
The simplest tool to change behaviour is to change its price. We will have more of something if we make it cheaper; less of something if it costs more. Since everyone knows this, why is our tax system backwards?
We say we want more employment, but we tax it heavily. Income from employment is subject to so much federal income tax, provincial income tax, health premiums, CPP and UIC, that "take home pay" doesn't bear much resemblance to one's official salary. Taxes are so heavy that some people are better off staying on social assistance.
Meanwhile, what about the things we don't want, like pollution? Pollution is free.
THIS IS AN EXERPT FROM THE SUDBURY STAR NEWSPAPER BY DIANNE SAXE,JUNE18-2008 . . . . .FOR THE REST OF HER ARTICLE SEE THE NEWSPAPER . . . . . . .. IN THE PAST FEW DAYS THERE IS A LOT OF TALK ABOUT A CARBON TAX IN CANADA . . . .ITS ABOUT TIME.
For 40 years, Canadian environmental law has tried to defeat economics. That is, we have forbidden people and businesses from doing things that save them money, and commanded them to do things that cost money. In the circumstances, it's amazing that we've accomplished so much: air is cleaner, rivers are healthier, smokestacks no longer belch choking smoke. But the urgency of climate change is just more proof that we must do more, and quickly. And for this, we need better tools.
Good tools make a job feel easier; bad tools (like conventional regulation) make it hard. And, often, the best tools are the simplest.
The simplest tool to change behaviour is to change its price. We will have more of something if we make it cheaper; less of something if it costs more. Since everyone knows this, why is our tax system backwards?
We say we want more employment, but we tax it heavily. Income from employment is subject to so much federal income tax, provincial income tax, health premiums, CPP and UIC, that "take home pay" doesn't bear much resemblance to one's official salary. Taxes are so heavy that some people are better off staying on social assistance.
Meanwhile, what about the things we don't want, like pollution? Pollution is free.
THIS IS AN EXERPT FROM THE SUDBURY STAR NEWSPAPER BY DIANNE SAXE,JUNE18-2008 . . . . .FOR THE REST OF HER ARTICLE SEE THE NEWSPAPER . . . . . . .. IN THE PAST FEW DAYS THERE IS A LOT OF TALK ABOUT A CARBON TAX IN CANADA . . . .ITS ABOUT TIME.
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