I have finally finished reading Tax Shift and my First Blogging Success turned out to be everything I expected. This book was very insightful with tons of research. I am convinced that most of the ideas in the book should implemented ASAP. Tax Shift is one of those extremely hard books to review because it is quite short (90 pages of text with an appendix and 15 pages of notes and references) and very dense. So if I were to hit on all of the interesting points, I would end up rewriting the book.
Here is a quote from the book that wraps it up nicely:
"Tax shifts pursue liberal ends, such as ecological restoration and a living wage, by conservative means, such as relying on free markets and rewarding enterprise"
Tax Shift was written / sponsored by the Northwest Environment Watch so it concentrates on the economies of Wash, Or, BC, and Idaho with a smidgen of Cal and Alaska. But, it's ideas could be used globally.
The basic idea of the book is that income and business taxes hurt the economy by taxing production, but the use of natural resources is not taxed heavily. So by shifting taxes away from production and towards resources, both the economy and the environment would be helped. Companies like Microsoft or Boeing would not have to pay taxes but companies like Weyerhaeuser would have to pay more taxes. This would attract companies that produce intellectual products. As consumers, some products would become cheaper and some would become more expensive. Everyone would benefit from an improved economy and environment.
The book starts by rating the different types of taxes based on the following criteria: economy (hurt or help), equity, environment, and ease of administration. Basically all of our current taxes got bad grades and should be replaced.
Next the book looks at the history of the different types of taxes. I found this very interesting as most of our taxes where pushed onto us under extreme circumstances and it is very difficult to make tax changes.
Finally most of the book looks at what should be taxed. These things include farms ( seems risky but is well explained), cars, construction, urban sprawl, energy, and natural resources. There is substantial research on the revenue that would be collected and the consequences of these taxes. An interesting point that was made is that companies that are charged with the new taxes may not be opposed and may benefit from them. If a resource depleting company currently makes efforts to be environmentally friendly, then they will have an advantage over other companies that aren't as friendly.
I recommend anyone who is interested in taxes or the environment to read this book. It is short and is free to download! In the future, I look forward to debate on some of the specifics that are written about in Tax shift.
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