6

I think it’s mainly politics. For example, when France tried to implement increases in tax on oil (indirect way of taxing carbon) it led to yellow jacket protest. As you pointed out it’s easy to track who produces the carbon in the economy. Especially on industrial level in developed countries. The reason 1 could be problem in some developing countries ...


4

Just to build up on @1muflon1's (+1) answer: I'd also add the "axe the tax" campaign in British Columbia back in 2008. The carbon tax there is (or at least was) considered a model example of how to implement revenue neutral carbon tax. Despite catchy slogans, the ruling party survived the election and so did the carbon tax. However, it brings us to the ...


2

It seems that there are many advantages to carbon taxes, including pricing in the environmental cost and generating revenue (that could offset other taxes). So why are we not seeing them in practice, at least not very much of them? We do, but not in an optimal way. I'm a forest owner. My forest sequesters about 40 tonnes of carbon dioxide every year. If I ...


1

It’s true that inheritance tax could pose a problem for businesses. The reason for that is that even though you are correct to say that the successor to businesses owner (I would avoid word patriarch - many business owners are women) has option of selling equity stake or take a loan this can be sub-optimal or difficult. For example, selling equity in ...


1

The structure of the tax ladder is such that the marginal tax rates keep increasing. The upshot is that if you earn more, your net earning (after taxes) will never be lower. So a company with a good year will always be better off compared to a company with a bad year, holding everything else equal. In this sense, tax does not provide advantage to companies ...


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