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Move income tax, to a tax on dirty energy

Comment 27th July 2010

 

If we want to encourage clean energy development and lower electricity use, we should raise taxes on emissions created by power plants, so that dirty energy costs more to produce than clean energy. 

If a tax based on the amount of pollutants a power station produced was raised significantly it would make renewable energy economically advantages.  Making clean energy cheaper than that produced by fossil fuels would lead to a surge in renewable energy projects.  This would lower pollution, create a secure energy supply and help the economy through investment.

Obviously this would lead to higher energy prices.  The government should offset this by lowering income tax.  Maybe the Liberal Democrats could get their 10,000 income tax threshold.  Those on fixed incomes would also need an increase, paid for by the emissions tax.  This would be a fairer system of taxation.  

Why does this matter?

It encourages renewable energy and will lead to a fairer tax system.  It also will help free the country from its dependence on fossil fuel.  

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