Rebuild Trust in Green Taxes. Cut Fares in Public Transportation.

No sooner do I post an agument that a drop in fuel tax revenue caused by drivers driving less should not be used as an excuse to cut taxes, but rather to channel taxes into projects that help ease the pain—than I find a report that British Members of Parliament are proposing just that. The Guardian reports that the public has lost trust in Green taxes because they are being used for revenue generation, not to help us wean ourselves off fossil fuels. This message was driven home by the Government's environmental audit committee's report on this years budget and taxes:

Green taxation "cannot be all stick and no carrots", the report said. The committee warned that green taxes needed to be straightforward and send a clear signal about behaviour to consumers, as well as be fair in order to build support for the measures.

The committee said the Treasury needed a coherent strategy for environmental taxation and that ministers should be looking to shift taxes from things that help society such as jobs and incomes, to things which are harmful such as pollution.

Maybe great minds do think alike. Although calling either myself or the elected representatives of the British public "great minds" might be a stretch too far...

Tags: Economics | Transportation | United Kingdom

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