Monday, January 4, 2010

France tries carbon tax 2.0

The first try for a carbon tax in France didn't work; it wasn't equitable, apparently.

Sarkozy fights to save French carbon tax plan

"Significantly for the French government's plans to revive the new tax, the Constitutional Council ruled against the legislation on the grounds that it offered too many exemptions, arguing that efforts to protect businesses from the tax meant that 93 per cent of industrial emissions were exempt from the levy.

Campaigners argued that the exemptions left an unfair burden on households, a position with which the council agreed, concluding that as a result the bill in its current form breached constitutional requirements for equality."


So what shall they do?

"The government is now reportedly considering removing most of the exemptions for businesses, but imposing a lower carbon tax on firms in order to ensure that competitiveness is not damaged. However, Lagarde hinted that farmers and fishermen were likely to retain their exemption from the new tax."



I like Sarkozy's attitude, though.

"... Sarkozy positioned the legislation as a major test of his political authority, arguing that its introduction was similar to other unpopular decisions that had later been proved to be of great historical significance, such as president de Gaulle's decision to end colonial rule from 1958."

Sometimes you gotta make the tough unpopular decisions to make real progress. The American Congress needs to learn that lesson, pronto.

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