Global Tax Ideas
|April 22, 2002||Posted by Staff under Progress Report, The Progress Report|
Could the UN Promote a Single Tax?
World needs global green tax, say some
To strengthen the world’s people against the destructive effects of corporate globalization, some call for a worldwide tax.
The type of tax chosen would be crucial. A tax against human initiative would be harmful and destructive, but a tax against special privilege would be beneficial.
Here are some excerpts from a recent Reuters report on the coalitions being formed with a view toward the Johannesburg UN conference to be held later this year.
by Robin Pomeroy
The head of the European Environment Agency, Domingo Jimenez-Beltran, wants a global tax on environmentally harmful fossil fuels, with the proceeds used to help develop the world’s poorest countries.
“Unless you get some global taxation it will be impossible to tackle the effects of globalisation,” he told Reuters in an interview.
Although unlikely to appeal to terrorists or the oil-dependent USA, such a tax would encapsulate the ideal of “sustainable development”, by stimulating growth in poorer countries while limiting environmental damage caused by richer nations, he said.
World leaders will try to square the circle of how to protect the earth and its finite natural resources, while at the same time spreading wealth, at a World Summit on Sustainable Development in Johannesburg at the end of August.
Jimenez-Beltran said that would be the perfect occasion to moot a global green tax, and for the European Union to lead by example. Many energy taxes have been in place for years in most EU member nations.
“Financing is the biggest issue for Johannesburg,” he said.
The EU agency he has headed since 1994 is responsible for monitoring the state of Europe’s environment but has no executive powers.
START WITH AVIATION
Last month’s U.N. summit on poverty in Monterrey, Mexico, set a target of halving the number of people in extreme poverty by 2015. A global tax, rather than voluntary donations, would be the best way to aid the poor, Jimenez-Beltran said.
“If we really want to tackle the short-sightedness and the iniquities that globalisation creates, and really provide financing for development, we need some system to replenish (development) funds that is not voluntary.”
The EU, which has upheld the Kyoto pact on cutting greenhouse gases from fossil fuels in the face of the United States’ unilateral walkout, has already begun thinking about radical energy taxes.
Many of the bloc’s 15 member states have introduced green taxes aimed at controlling energy demand and the EU’s executive Commission is considering a proposal to tax kerosene — aviation fuel which, by international treaty, is tax free.
It would require an international agreement to impose a general jet fuel tax, but the EU could opt to tax fuel used for flights within the bloc, although not for other international traffic.
Such a move could lead to global taxation on aviation fuel and, eventually, to other fuels, Jimenez-Beltran said.
“It’s ludicrous that one of the most luxurious ways of travelling (aviation) is not taxed. Kerosene is the clear (fuel to start taxing) because it’s easy to collect. Second would be and oil tax…of course producer countries might have something to say about that.”
But EU diplomats involved in preparing for Johannesburg, said taxation was not likely to be a priority subject at the summit.
“It is EU policy to go for kerosene taxation globally, but I don’t think it’s going to be part of any agreement at Johannesburg,” one said.
Previous proposals for global taxation such as the “Tobin tax” on currency trading have come to nothing.
For more on green tax ideas, see the Green Tax Shift Headquarters
If several nations and NGOs all favored a single tax policy, what would happen? Is the United Nations capable of promoting smart taxation policy? Tell your views to The Progress Report!