Monday, June 11, 2007

Taxes and the Environment

I haven't personally researched tax legislation to determine how it relates to environmental policy or consumer behavior towards the environment. I'm sure there is a significant body of research on how taxation impacts economic activity. One particularly interesting proposal is known as the Fair Tax. The Fair Tax wants to replace U.S. federal taxes with a single national sales/consumption tax. How would this relate to the environment? Other than saving paper by eliminating government forms.

Triple Pundit summarizes the Fair Tax and relates the resulting economic impacts to the environment. It is a great article and concisely explains what you would need to know. The Fair Tax website has a lot more detail on how it would work and they also have some research studies there on the various impacts throughout the economy.

To solve our environmental/sustainability problems we need to provide new solutions. The Fair Tax may be one of those.

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