As the economic-policy debate in Europe and around the world shifts from fiscal austerity towards measures aimed at stimulating growth, smarter taxation will be essential to getting the balance right. That means focusing on energy and carbon taxes, which have a much less negative impact on economic activity.
ATHENS/BERLIN – Governments throughout the European Union and around the world confront a seeming Catch-22: the millstone of national debt around their necks has required them to reduce deficits through spending cuts and tax increases. But these are impeding the consumer spending needed to boost economic activity and kick-start growth. As the debate shifts from austerity towards measures aimed at stimulating growth, smarter taxation will be essential to getting the balance right.
When governments think about the difficult task of raising taxes, they usually think about income tax, business taxes, and value-added tax (VAT). But there are other taxes that can raise significant amounts of revenue with a much less negative impact on the economy. These are the taxes that governments already levy on electricity and fossil fuels.
Such taxes play a crucial role in cutting the carbon emissions that cause climate change. But recent research shows that they can also play a useful role in raising government revenue at little cost in terms of economic growth.
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The Middle East will face its own unique set of challenges in the age of climate change, from changing rainfall patterns and water scarcity to heatwaves and wildfires. While most of the region recognizes the need for more investment to tackle these issues, closer cross-border cooperation will also be necessary.
wants to take advantage of a rare area of agreement in the region to advance green projects and investments.
Despite inadequate international support and a lack of access to COVID-19 vaccines, African governments and regional institutions have acquitted themselves well in responding to the pandemic. The task now is to build on these successes, making “health for all” an overarching whole-of-government priority.
propose a new holistic approach to designing policies, directing innovation, and investing in people.
ATHENS/BERLIN – Governments throughout the European Union and around the world confront a seeming Catch-22: the millstone of national debt around their necks has required them to reduce deficits through spending cuts and tax increases. But these are impeding the consumer spending needed to boost economic activity and kick-start growth. As the debate shifts from austerity towards measures aimed at stimulating growth, smarter taxation will be essential to getting the balance right.
When governments think about the difficult task of raising taxes, they usually think about income tax, business taxes, and value-added tax (VAT). But there are other taxes that can raise significant amounts of revenue with a much less negative impact on the economy. These are the taxes that governments already levy on electricity and fossil fuels.
Such taxes play a crucial role in cutting the carbon emissions that cause climate change. But recent research shows that they can also play a useful role in raising government revenue at little cost in terms of economic growth.
To continue reading, register now.
As a registered user, you can enjoy more PS content every month – for free.
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