Draft Advocacy For True Cost Taxing

Seth Rutledge
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Seth Rutledge in Member Posts on Dec 14, 2009
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We have before us several challenging circumstances: loss of jobs, loss of tax revenue from those jobs, greater demand for aid from the newly unemployed, and the looming threat of environmental catastrophe.  We are perched on the edge of what could be a downward spiral and total collapse of our standard of living. 

 

Yet we believe that there is a way to solve all of these problems at once.  We must implement true cost taxations policy. 

 

To find the solution we must look at the root of the problem.  Where are the jobs going?  Overseas, where labor is cheap and environmental regulations are almost non-existent.  As our jobs go out, cheap foreign goods come back to replace what was once made here.  Everyone likes a cheaper product, but what is the true cost of these cheap products?  The true cost is loss of jobs, shrinking local economy, and environmental disaster. 

 

The solution?  We must apply a tax to all goods to reflect their true cost.  If a the production of a product is causing pollution and destroying a natural resource (like for example the rock salt that polluted Onondaga Lake) then a tax should be applied to raise the money needed to clean up the mess.  If a good is produced overseas, then a tax should be applied and the money used to start a local business to produce the same product. 

 

One example from here in Syracuse is the tire tax.  New tires were taxed to account for their disposal.  Now tires are recycled into pavement, and hazardous ugly tire dumps are eliminated.  Recycling jobs were created, and the burden is placed on people buying new tires.  This model could be used for products and packing of all kinds that are now an ecological and economic burden to dispose of.

 

But won’t this raise the price of most goods beyond that reach of people and make Syracuse unlivable?  Two mechanisms will prevent this from happening.  First the taxes will increase progressively over time to give time for local sustainable alternatives to be developed.  Additionally some of the money will be used to give rebates to people.  For example, let’s say a tax is applied to all fossil fuels to curb global warming and promote the shift to local sustainable bio fuels.  The tax will slowly increase to give time for the alternative fuel industry to develop.  Part of the money from the tax will go towards incubating the alternative model, and part will go towards rebates at the gas pump/power bill.  The rebates will allow people to buy the fuel that they need at a reasonable cost, so only those who are consuming the most will really shoulder the burden of the tax.  People will be able to get on with their lives as usual and excess fossil fuel usage will be curbed.

 

Just imagine the potential for economic development and job growth if we commit to supplying our needs locally/regionally.  Hundreds of thousands of products shipped in from overseas means hundreds of thousands of new jobs to replace those products.  In the meantime pollution sources are curbed, water and land is cleaned, and CNY begins to attract more people. 

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