chapter  12
8 Pages

Tax Cuts

Earlier chapters have raised a number of challenges to environmental fiscal reform. But perhaps the most obvious objection of all is simply this: an environmental tax increase is a still tax increase. Many people, especially in the United States, tend to see fiscal reform as just another government revenue grab. But this objection overlooks something equally simple: the billions of dollars from new taxes on environmental harm, along with those on resource windfalls, can be put toward cutting conventional taxes. Even better, slashing obsolete, environmentally harmful subsidies can shrink government and pay for an additional tax cut.