What Should We Tax? Herman Daly Says Resources Not Value Added Nor Income
A variation on a theme we've covered before but against all logic hasn't made much headway (a combination of the public generally going deaf to any mention of taxes unless it's first prefaced with the word 'lowering' and opposition from extractive industries): CASSE has a new piece from Herman Daly wherein he argues that we ought to move from taxing value added/earned income to taxing natural resource extraction/natural resource throughput. Daly writes:
This would help us to count all costs and minimize depletion and pollution. It would stop penalizing the desired creation of value added by taxing it. It would reduce unemployment. It would use the revenue from natural resource taxes to substitute that from the eliminated value added taxes. The first value-added taxes to be eliminated would be the most regressive ones, thereby serving both efficiency and equity. This seems such an obvious improvement that one wonders why economists remain so in thrall to value-added taxation?
Read more of Daly's argument: Center for the Advancement of the Steady State Economy
More on Taxes
Lowering Income Taxes While Raising Pollution Taxes Reaps Great Returns
Cutting Fuel Taxes Will Exacerbate Oil Crisis