tax

Alberta’s Carbon Tax Brings Cash to Great Programs

- Adam Clare

The Canadian province of Alberta is best known for the tar sands and the damage extraction of the bitumen has done to the planet. The province is now aware that their extraction economy won’t last forever because it isn’t renewable, so they have started to implement policies to make their province more efficient. One recent thing they did was implementing a carbon tax. Over at desmog blog they compiled a list of ten reasons Albertans like the new carbon tax and how it benefits them.

4) Household Rebates — $1.5 Billion

A popular critique of carbon pricing is that it unfairly punishes lower income people, costing poor people a higher percentage of their income and leaving even fewer options to, say, buy a newer and more fuel-efficient car or furnace.

Thankfully, Alberta has integrated well-designed rebates into the design of the carbon levy, channelling $410 million in 2017-18 to household rebates.

Two-thirds of Albertan households have already received partial or full rebates, depending on their income levels. Consumers who pollute less than average actually make money from the rebates.

Over three years, the household rebates will amount to $1.5 billion.

Read more.
Thanks to Delaney!

Taxing Sugary Water Works

- Adam Clare

Beverages infused with copies amounts of sugar like Pepsi or Coke aren’t good for you health. When an entire nation consumes too much then public health suffers greatly. This has many governments looking into how they can stymie this overconsumption of unhealthy drinks. One solution is taxing soda sales.

in 2014 the Mexican government started such a tax and consumption has dropped. To prove its effectiveness researchers looked into how much of an impact the tax had on people drinking pop.

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A study published Wednesday in the British Medical Journal suggests the tax is working: After one year, sales of sugar-sweetened drinks in Mexico dropped by 12 percent. And among poor households, which have the highest levels of obesity and untreated diabetes, sales fell by 17 percent.

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These results are not surprising, but their empirical confirmation is of the greatest importance for governments that have opted to use taxes on sugar sweetened beverages as part of public health strategies, and those considering to do it,” wrote Franco Sassi, head of the public health program of the Organization for Economic Development and Cooperation.

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Thanks to Delaney!

IMF: Tax the Rich to Improve the Economy

- Adam Clare

The International Monetary Fund has just completed a study that compiled data across time and space to conclude that taxation isn’t harmful for economies. Indeed, taxing the rich is actually very beneficial for any national economy because it stops inequality – which is an awful thing for both people and economic progress.

Labelled as the first study to incorporate recently compiled figures comparing pre- and post-tax data from a large number of countries, the authors say there is convincing evidence that lower net inequality is good economics, boosting growth and leading to longer-lasting periods of expansion.

In the most controversial finding, the study concludes that redistributing wealth, largely through taxation, does not significantly impact growth unless the intervention is extreme.

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In Ireland, Carbon Tax Means Less Waste and More Revenue

- Adam Clare

Modern economies indirectly subsidize environmentally damaging corporate practices by ignoring the environmental costs ( younger generations have to deal with the environmental damage), this can be seen in everything from the tar sands in Alberta to ewaste in electronics. In Ireland they have started a carbon tax to deal with this environmental problem while raising a lot more revenue for the country.

The results in Ireland prove promising and may encourage other countries in Europe to take the European Commission’s suggestions that a carbon tax can help other debt-ridden economies.

Household trash is weighed at the curb, and residents are billed for anything that is not being recycled.The Irish now pay purchase taxes on new cars and yearly registration fees that rise steeply in proportion to the vehicle’s emissions. Environmentally and economically, the new taxes have delivered results. Long one of Europe’s highest per-capita producers of greenhouse gases, with levels nearing those of the United States, Ireland has seen its emissions drop more than 15 per cent since 2008.
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The three-year-old carbon tax has raised nearly 1 billion euros ($1.3 billion) overall, including 400 million euros in 2012. That provided the Irish government with 25 per cent of the 1.6 billion euros in new tax revenue it needed to narrow its budget gap this year and avert a rise in income tax rates.

Read more here.

Thanks to Mike!

Denmark ‘Fat Tax’ Starts Saturday

- Adam Clare 3 Comments

Denmark is moving ahead with a tax on products that make people fat. Denmark already has the lost percentage of obese people in Europe and even they are concerned with the increasing girth of their people. This new ‘fat tax’ will hopefully keep the country’s slim people slim and inspire other countries to institute a similar tax.

Starting from this Saturday, Danes will pay an extra 30p on each pack of butter, 8p on a pack of crisps, and an extra 13p on a pound of mince, as a result of the tax.
The tax is expected to raise about 2.2bn Danish Krone (£140m), and cut consumption of saturated fat by close to 10pc, and butter consumption by 15pc.
“It’s the first ever fat-tax,” said Mike Rayner, Director of Oxford University’s Health Promotion Research Group, who has long campaigned for taxes on unhealthy foods.
“It’s very interesting. We haven’t had any practical examples before. Now we will be able to see the effects for real.” The tax will be levied at 2.5 per Kg of saturated fat and will be levied at the point of sale from wholesalers to retailers.

Read the rest of the article.

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