Global Environment Tax - for the Survival of the Earth

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Sunnuntai 9.6.2019 klo 18:08 - Mikko Nikinmaa

It is an undeniable fact that the Earth’s resources and possibilities for production are overused. Another indisputable fact is that the wealth in the world is very unequally distributed. A third fact almost universally accepted is that companies move their production to cheap countries and that companies and individuals often go to great lengths to pay as little tax as possible. These facts have resulted in the most inappropriate response that is possible: the rise of populism striving for nationalistic isolation. The solution could have been appropriate a hundred years ago with less than two billion people, virtually no mass communications and no means for rapid transport possible for common people. However, today we must accept that we live in one world, and that what is happening in, e.g., India will affect us in, e.g., Scandinavia. It doesn’t help us much if we can say that “our nation has done everything correctly, but we are going under because other nations have not done enough”, when the environmental problems such as climate change, environmental pollution and food shortages make life intolerable.

Thus, only global solutions can be sustainable. However, up to now globalism has only been associated with favouring the rich. All the international negotiations have had the dividing line between developed and developing nations. Both outsets must be changed if we will have sustainability and will leave habitable Earth to our grandchildren. A balanced solution to this would be a progressive global environment tax (GET). The funds collected this way would be used for urgent environmental needs throughout the world. Below a certain adjusted (one needs to take into account absolutely necessary expenses required for warming the houses and clothing that differ between warm and cold climates) level of income there would be no tax, and tax would be increased with income. This would ensure that inhabitants from low- and high-income areas would pay justified tax. The tax should also be paid from property to make it impossible toIMG_20170725_0053.jpg evade the tax by, e.g., investing in stock market. Further, since the tax would be global, companies could not evade it by transferring operations to low-tax nations. A question, which also has to be solved is how different nations would pay the global tax, since their involvement in the overall economy differs. The simplest solution, again taking into account the different wealth of nations, would be to have the contribution as gross national product divided by population. It would be imperative for nations to be required to contribute to the global tax fund, since they have very different roles in overall economy. Since a major environmental problem is that the world population has increased beyond what can be tolerated, the average number of children should somehow be taken into account. This could be done by including in the nation tax average number of children. The nation’s contribution would be increased, if the number of children exceeded the number calculated for a stable population. As no nation would be exempt from the nation-wide payment, this would ensure that the population contribution would be paid also by countries, where most of the inhabitants would be exempt from payment. GET would be collected by the United Nations: UN already has all the world’s nations included.

Utopia? Probably, but environmental deterioration (which includes climate change) is the major enemy of every person living on the Earth. Consequently, combatting climate change should be given a high priority in allocating defence budget funds. All the nations in the world could easily pay a significant sum of money to GET – and doing that would actually decrease the need for traditional defence spending. Besides, having large defence budgets do not help much if there is nothing to defend any more. Utopia, maybe, but we need these kinds of solutions in order to give a habitable Earth to our grandchildren.

Avainsanat: climate change, environmental pollution, developmental aid

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