‘Shifting taxes away from labour should be a priority for all Member States’, according to the European Commission. The underlying idea: tax commodities instead of labour, because then sustainability becomes financially attractive. Furthermore, the reason for employing as few people as possible, or for exporting labour to low wage countries, disappears. This is not just empty rhetoric, because the Ex’tax is already a fact.
In the report New era. New plan the ambitious objectives of Ex’tax are laid out. The project is based on a new vision on economic growth, dictated by the global population growth and increased scarcity of commodities. Fiscal measures are the instruments and a circular economy are the result. No mean feat and one that requires a long term strategy. Precisely for that reason, in New era. New plan, five solid recommendations are given for the coming years:
Ex’tax stands for a new vision on levying taxes. It is not about the money but the effect of the money. Ex’tax calls for a financially neutral transformation: in principle, not a penny more is collected in tax. The tax simply comes from another source and inevitably that impacts business operations. We have said it before: sustainability is about much more than just idealism; sustainability is about future proof entrepreneurship. At Ex’tax they have understood that perfectly.
‘A very thorough report that shows in detail the possibilities for a shift in taxation. It would be wise for the legislator to use these insights to enable both job creation and the transition to a circular economy.’ – Prof. Dr. Herman Wijffels, economist, former Dutch representative at the World Bank.
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