Environmental levy with compensation

This was a topic for online discussion on the Friday Room website Posted July 2020

The proposal is to promote a new policy by combining two existing and widely supported proposed policies.

The first is to replace income tax with taxes on resource use. By itself this would make things more expensive and increase the cost of living for everyone, but more for those using more resources.

The second would be a citizen’s income of an amount large enough to compensate everyone for increase of the cost of living caused by these resource taxes by an amount equal to the average increase.

Overall this would make lifestyles that use more resources relatively more expensive and a guaranteed minimum income would lead to a reduced and simpler benefits system.

In the longer term the need for income tax would be reduced relieving citizens of the chore this represents