Tuesday, June 29, 2010

Have you seen more than three images of the BP Oil Spill?

There's been talk, (surprisingly little of it) about the fact the 'mainstream media' is showing hardly any images of the actual damage the oil spill has been doing to the local flora and fauna of the Gulf. In this jarring NY Daily News article from early June, the reporters talk with a BP contractor who is seriously disturbed by what is happening down there:


""When we found this dolphin it was filled with oil. Oil was just pouring out of it. It was the saddest darn thing to look at," said a BP contract worker who took the Daily News on a surreptitious tour of the wildlife disaster unfolding in Louisiana.


""There is a lot of coverup for BP. They specifically informed us that they don't want these pictures of the dead animals. They know the ocean will wipe away most of the evidence. It's important to me that people know the truth about what's going on here," the contractor said.


And Finally:


"On Monday, a Daily News team was escorted away from a public beach on Elmer's Island bycops who said they were taking orders from BP."


So that's why. Here's some good coverage from the SF Gate that pretty much lays it out there. 
It's hard, when disasters of this magnitude occur, people often go searching for answers and justifications. And when none are readily available, we at least want to know that we've learned our lesson, that given the harrowing experiences we've been through (or put others though) we won't make the same mistake again. Sadly, I think there's another lesson in this perverse saga in American environmental history:


If you fuck up because the people in charge of making sure you don't are indirectly controlled partly by a group of people deeply indebted to you, since you've helped finance their campaigns, and also of many of those in charge of punishing you and cleaning up your mess, you'll successfully lobby them to put you in charge of punishing you and cleaning up your mess, with you to oversee you. And who says when you've spent enough money or time on reparations? Pretty much you do. Lesson? 






More
Oil Spill Images



Thursday, April 22, 2010

in response...

..to this NY Times article entitled "Don't Fear the Invisible Tax" from yesterday, 4/21. He sums it up: "Opponents of the value-added tax complain that it is not sufficiently visible to voters, and is thereby an obstacle to responsible public spending. But in fact government spending is no lower in countries with more visible taxes." 
This may be true but completely misses the main objection to the VAT.

"This is an excellent example of the "informed discussion" surrounding taxation in America:
First, it's "all taxes are bad," versus "all taxes are good," with those particularly partial to the old liberal-conservative back and fourth  writing glibly "Did any Times contributor ever see a tax they did not like?"
But back in reality, you argue taxation's overall visibility doesn't determine gov pension contributions, so who cares?
Well, I do. The VAT is still a tax on wages, income, labor, which is inherently regressive. What about payroll taxes? Also on labor, so inherently regressive. What about the low capital gains taxes in America? On the earnings of capital, which largely accrues to the wealthier echelons, because after all, "it takes money to make money," so also regressive, because their so low in comparison to income and payroll.
 It seems the discussion takes taxation as inherently evil, if perhaps a necessary evil, and then attempts to find the least bad tax. This is the right start, as all taxes do impose a deadweight loss on society, but on different demographics of society. And even the total deadweight loss varies depending on the tax. When there's nice diagonal supply and demand curves, this is referred to as Harberger's Triangle. BUT, when the thing being taxed is completely fixed in supply, this loss to society essentially vanishes, and if that weren't enough the incidence of the tax falls on the supplier of such goods, and cannot be passed on to the consumer, or employer. What in the world is fixed and could be taxed so efficiency and justly, you say? Well, you're standing on it: land.  Wait, we already have property taxes, and they've been decreasing since the mid first half of the 20th century, they must not work very well. Well, they used to when they made up a larger portion of tax revenues, AND when they were based on the unimproved value of land; that is what it would be worth without buildings and other man-made additions. Turns out, the land value, which was not created or increased by the current owner, can very effectively be used to fund public expenditures, especially at a local level. These values, are created by increases in population, AND previous expenditure of the government: roads, schools, water supply, parks, fire and crime protection, etc, are all paid for by the community as a whole through taxation, yet are appropriated by the select few whose land has gained value because of such spending. In a nut shell, by taxing those surrounding the public improvements, the amount by which their land rose in value because of it, you can reach efficiently priced (short run marginal cost) provisioning of public goods! And on top  of this, a tax on unimproved land value (land value taxation, or LVT) encourages efficient use of the land, by untaxing improvements, and making sure the owner is productive with it, in order to pay the tax, not just buy it, build a parking lot, and wait for the value to go up and sell it. So yeah, it also curbs speculation in land/real estate. But that doesn't happen here, we've overcome irrational exuberance; oh wait, that just happened. 
And finally, for those who say, "no more taxes please," and think of LVT as just another excuse to extract the last coin from the working man's purse, think again:
the taxation on land does not add to the taxation on labor and capital, it replaces it. The average homeowner would be paying less overall taxes, because, although his property tax went up, he's no longer punished for improving the land, and his payroll and income taxes dropped correspondingly.

If it sounds to good to be true, it's because the doctrine of "neo-classical economics" has been forged intentionally and not, to bury this obvious and effective solution under the guise of advanced models increasingly not based on anything that resembles reality. Ever since Marshall, J. B. Clark, Knight, and the like started to subsume the third distinct factor of production, land, under capital, the war against land taxation began. And the fact the few these days even know about it, or it's popularizer, Henry George, who became the best-selling American author ever in the late 1800's, by selling over 3 million copies of his "Progress and Poverty," published in dozens of languages, is the greatest testament to their "success" there ever was. So, if you're down with the status quo for the next 100 years, please ignore this."

Saturday, March 13, 2010

ETR in Germany, Continued: The Implementation

The first step of Germany’s ETR was to institute uniform taxation rates of road fuels and the consumption of heating oils. Electricity use was also re-taxed, as Germany had a previous ad valorem tax on electricity, with rates “differentiated between industry and households,” where the revenues “were earmarked for the subsidisation of the German coal industry,[1] known as “Kohlepfennig.” Additionally, taxes on natural gas and light heating fuels were increased. It looked as follows:
Road Fuels:                 3.07 cents/liter
Heavy Heating Oils:   17.89 cents/ton; increase of 2.56 on existing heavy oil for heating tax, decrease of 10.23 on existing heavy oil for electricity generation tax
Electricity:                   1.02 cents/kWh
Light Heating Oils:     Increased 2.05 cents/liter; from 4.09 to 6.14 cents/liter
Natural Gas:                Increased 0.17 cents/kWh; from 0.18 to 0.35 cents/liter
No tax on the consumption of Coal

Germany Environmental Taxation Reform (ETR) History


Germany's interest in environmental tax reform was seen "as part of a more general overhaul of the tax system, [as] the German ETR was largely motivated to facilitate the allocation of production processes and demand towards technological innovation, and the creation of additional jobs.[1]"  The German Institute for Economic Research (DIW) corroborated this by reporting in 1994 that “energy consumption and unemployment would considerable decrease and unemployment would considerably decrease,[2]” approximating that 600,000 new jobs would be created over 10 years. Moreover, they found that there would no significant negative effect on GDP growth or inflation.

Monday, February 22, 2010

Solidifying the link between Land Value Taxation and Environmental Tax Reform

Full Employment, Growth And Progress On A Small Planet: Relieving Poverty While Healing The Earth 
By: Mason Gaffney
... especially Section C: "Needed Modern Adaptations," where Gaffney updates Georgist policy prescriptions beautifully, and discusses it in a way that relates directly to environmental taxation policy.
This is the link needed to build a broad and effective coalition: LVTers and ETRers finally coming together.

Tuesday, February 16, 2010

Slumburbia - Opinionator Blog - NYTimes.com

From February 10th's "Slumburbia" - Opinionator Blog - NYTimes.com:

".......a few lessons about urban planning can be picked from the stucco pile.

One is that, at least here in California, the outlying cities themselves encouraged the boom, spurred by the state’s broken tax system. Hemmed in by property tax limitations, cities were compelled to increase revenue by the easiest route: expanding urban boundaries. They let developers plow up walnut groves and vineyards and places that were supposed to be strawberry fields forever to pay for services demanded by new school parents and park users.

Tuesday, January 19, 2010

The first step towards sustainability- changing values and expectations through ecotaxation policy



                With recent discussion in the United States and abroad about possible policy responses to climate change focusing on “cap and trade,” where select polluters will be issued a quota of permits corresponding to a maximum amount of carbon dioxide, and the ability to trade them among themselves to work out the least possible cost of abatement, now is an excellent time to look at deeper reforms, reforms that address the fundamental issues and causes of our current crisis in a way that sets our economy, and indeed our society and civilization as a whole, on the right long-term track. Instead of attempting to mitigate the end result (too much CO2), we need to examine what actions and practices got us here, and what else needs to be addressed beyond CO2 in order to stabilize the earth’s climate, and have a truly sustainable society.