RE: consumption-based tax

Hal Hamilton (hhamilton@centerss.org)
Fri, 6 Nov 1998 12:36:29 -0500

This mention of a consumption based tax is relevant to sustainable
agriculture if it means a tax on the consumption of nonrenewable resources
at the point of that initial consumption. This is the direction all taxes
should go, in the opinion of a significant number of ecological economists.

If what you mean is exchanging a progressive income tax for a regressive
sales tax, then it's a reactionary idea.

Hal

Hal Hamilton
Center for Sustainable Systems
433 Chestnut St., Berea KY 40403 USA
Phone: (606) 986-5336; Fax: (606) 986-1299
hhamilton@centerss.org

> -----Original Message-----
> From: owner-sanet-mg@ces.ncsu.edu [mailto:owner-sanet-mg@ces.ncsu.edu]On
> Behalf Of Heidi.A.Busse@Lawrence.edu
> Sent: Friday, November 06, 1998 4:12 AM
> To: Andy Clark, SAN Coordinator; sanet-mg
> Cc: Tom Green
> Subject: consumption-based tax
>
>
> i need a better understanding of the "consumption-based tax" -- a friend
> and i were discussing the recent elections, and he (a quasi-democrat)
> mentioned that he would vote for a republican if s/he supported a
> consumption tax. I furrowed my eyebrows at my friend and queried
> "consumption tax . . . what is that?" He vaguely responded that it is
> "a tax on the amount of goods an individual consumes. I would like to
> see this replace the income tax because I think that it would give
> people more control over their money, force people to evaluate and
> probably reduce the goods that they consume, and not penalize people for
> working, but reward environmentally-responsible consumers."
>
> Is this accurate? Are there any politicians promoting this tax (or AT
> LEAST discussing it)? Are there any countries that implement a
> consumption tax? Is it a feasible alternative? My friend mentioned
> that there has been (by whom? i don't know) discussion about the
> consumption tax, and that its opponents fear what would happen to the
> economy the few months before it is implemented, because they expect a
> surge in spending . . . any thoughts on this?
>
> I'll toss out something else that he mentioned . . . (sorry i keep
> jumping around) . . . jeff (oh, that's my friend) thought that this
> might be an option for companies with reduced sales after the
> consumption would be implemented: a greater promotion for investments
> in companies (how would this work? i don't know because i possess an
> anthill of knowledge regarding the economy . . . ).
>
> How would a consumption tax affect salaries? minimum wage? How would
> it affect international trade? local businesses?
>
> I'm really curious about this idea and i suspect that there are others
> who already have discussed the consumption tax. If so, please let me
> know your thoughts.
>
> heidi
> Heidi.A.Busse@Lawrence.edu
>
>
>
>
>
> On Fri, 02 Oct 1998 14:25:19 -0400 (EDT) san@nal.usda.gov (Andy Clark,
> SAN Coordinator) wrote:
>
> >
> >---------- Forwarded message ----------
> >Date: Thu, 1 Oct 1998 14:51:06 -0400
> >From: Tom Green <tagreen@compuserve.com>
> >To: Andy Clark <san@nal.usda.gov>
> >Subject: ACIC News
> >
> >
> >***************************************************************
> >Agricultural Conservation Innovation News
> >September 28, 1998 Issue No. 2
> >***************************************************************
> >
> >Produced and distributed bimonthly via e-mail by the Agricultural
> >Conservation Innovation Center (ACIC), a private non-profit
> >organization at
> >2234 S. Hobson, Charleston, SC 29405-2413. 843-740-1325, 843-740-1331
> >(fax), website <http://www.agconserv.com/>. For a free subscription or
> >to
> >unsubscribe, please e-mail your request to <tagreen@compuserve.com>.
> >
> >************
> >Contents
> >************
> >
> >I. Sponsoring organizations needed to speed innovations
> >II. Excessive rainfall risk policy available
> >III. Corn rootworm policy to accept recommended scouting protocols
> >IV. Risk Journal: Risk aversion among crop consultants
> >V. ACIC meeting schedule for 1998-1999
> >VI. About ACIC
> >
> >***********************************************************************
> >I. Sponsoring organizations needed to speed innovations
> >
> >Question: What's the fastest way to gain farmer adoption of new,
> >conservation-enhancing techniques?
> >
> >Answer: Conduct risk-free demonstrations on farms in every county!
> >
> >Grower associations, Extension offices, Conservation Districts,
> >agricultural input suppliers, crop consultants and other groups can now
> >participate in a new program to speed adoption of innovations to
> >benefit
> >their members, constituents, customers and clients.
> >
> >Most farmers are reluctant to adopt new techniques even if the
> >innovation
> >has solid research behind it and promises to lower production costs and
> >enhance conservation. It's only natural. How much of your annual salary
> >would you bet on something new you had heard or read good things about,
> >but
> >had never experienced first hand?
> >
> >A new program developed by ACIC in collaboration with IGF Insurance
> >Company
> >can provide this first-hand experience without risk. The program
> >provides
> >for testing of innovative techniques on a portion of a farmer's acres.
> >A
> >low-cost insurance policy will reimburse the farmer for any yield
> >shortfall
> >between the innovative field and a comparable field. The comparable
> >field
> >must be managed in exactly the same manner as the innovative field,
> >except
> >for the innovative practice.
> >
> >This split-field approach has increased adoption of no-till in cotton
> >fields, innovative disease management in apple orchards and IPM
> >practices
> >in tomato fields. Farmers have adopted these new innovations more
> >rapidly
> >because they saw the innovation practiced successfully on their own or
> >neighboring farms.
> >
> >Sponsoring organizations will assist ACIC in clarifying the benefits
> >and
> >risks associated with an innovative practice, recruit farmer
> >participants,
> >ensure sufficient technical support and help adjust any claims.
> >
> >ACIC requests assistance from potential sponsor organizations to
> >identify
> >projects where insurance coverage would enhance farmer participation.
> >If
> >you are aware of a Best Management Practice (BMP) or Integrated Pest
> >Management (IPM) innovation that might benefit from risk-free
> >demonstration
> >on farmer acreage, or for more information, contact Jim Quinton, ACIC,
> >2234
> >S. Hobson, Charleston SC 29405. 843-740-1325, 843-740-1331 (fax),
> ><Jim.Quinton@agconserv.com> (e-mail).
> >
> >***********************************************
> >II. Excessive rainfall risk policy available
> >
> >Applying nitrogen to field crops in two separate applications reduces
> >runoff and leaching and increases yields in most years. The savings in
> >input costs can be as high as 40% over single nitrogen applications.
> >
> >Why aren't all farmers using this technique? In some years, excessive
> >rainfall during late spring can prevent farmers from making the second
> >application of nitrogen, resulting in depressed yields. Farmers are
> >understandably reluctant to take that risk.
> >
> >Next season for the first time, farmers will be able to purchase an
> >insurance policy to reimburse them for losses suffered due to excessive
> >and
> >untimely rainfall. The policy was developed by ACIC and will be offered
> >through American Agrisurance in several states, subject to state
> >regulatory
> >approval.
> >
> >The policy can also benefit farmers using a post-emergent herbicide
> >strategy as an alternative to atrazine. For more information, contact
> >Tom
> >Buman, Agren, 312 W. 3rd St., Carroll, IA 51401. 712-792-6248,
> >712-792-6175
> >(fax), tbagren@netins.net (e-mail).
> >
> >***********************************************************************
> >****
> >***
> >III. Corn rootworm policy to accept recommended scouting protocols
> >
> >A new insurance policy is close to completion that will insure growers
> >who
> >follow a crop consultant's advice not to treat for corn rootworm in
> >corn-on-corn rotations. This policy, expected to be available in
> >several
> >corn belt states in 1999 subject to state regulatory approval, removes
> >the
> >risk that the consultant's recommendation may be wrong, resulting in
> >unacceptable rootworm damage.
> >
> >Typically, crop consultants perform a sampling routine for corn
> >rootworm
> >beetles in late July to early August. Based on these sampling results,
> >the
> >consultant will advise the farmer if a soil insecticide treatment is
> >justified for rootworm larvae the following spring.
> >
> >Farmers who have had their fields scouted for rootworm beetles by
> >qualified
> >crop consultants using recommended scouting protocols will be eligible
> >to
> >purchase the policy when it becomes available.
> >
> >For more information, contact Tom Buman, Agren, 312 W. 3rd St.,
> >Carroll, IA
> >51401. 712-792-6248, 712-792-6175 (fax), tbagren@netins.net (e-mail).
> >
> >******************************************************************
> >IV. Risk Journal: Risk aversion among crop consultants
> >
> >Crop consultants have a tough job. They do it well, as evidenced by a
> >survey conducted by Iowa State University indicating that 74% of
> >farmers
> >report a $2 to $5 return on every dollar they spend for crop consulting
> >services (see http://www.ipm.iastate.edu/ipm/ncr/info/survey.html for
> >survey results).
> >
> >On the other hand, crop consultants suffer from the same aversion to
> >risk
> >that afflicts farmers, according to a new book edited by Steven A.
> >Wolf:
> >
> >"Farm advisors have an incentive to err on the side of caution, meaning
> >interpret pest treatment thresholds with an eye on minimizing exposure
> >to
> >blame. As one consultant expressed, 'It is easier to prove you should
> >have
> >sprayed than you did not need to spray.' Farmers, Extension, dealers
> >and
> >independent crop consultants expressed that there are incentives to
> >apply
> >inputs when the data informing such a decision are inconclusive or open
> >to
> >interpretation. Managing a crop to maximize a farmer's net income is
> >far
> >more risky for a consultant than is managing for maximum yield and
> >highest
> >quality. Recommendation of an additional fertilizer or pesticide
> >application is preferred by consultants to risking crop yield and/or
> >quality loss. This form of bias stems from consultant's interest in
> >insuring their reputation, their most important asset."(Privatization
> >of
> >Information and Agricultural Industrialization. S.A. Wolf, ed. CRC
> >Press
> >LLC, Boca Raton, FL, page 177.)
> >
> >Affordable "errors and omissions" insurance is not available to protect
> >crop consultants and farmers from the consequences of faulty advice,
> >hence
> >the risk averse strategy. Many IPM and BMP techniques to minimize
> >inputs
> >carry a small but very real risk of failure. If a crop consultant knows
> >that 1 out of 100 recommendations for a specific input reduction
> >strategy
> >will be wrong due to this inherent error, it makes sense to err on the
> >side
> >of extra inputs whenever the decision is not clear cut.
> >
> >Comprehensive and affordable insurance for crop consultants, covering
> >all
> >possible failed recommendations, is not likely to be available in the
> >near
> >future. The "single peril" approach pioneered by ACIC is a good
> >stop-gap
> >measure for consultants. For example, the policy in development for
> >corn
> >rootworm (see III. above) will reduce the impact on farmers and
> >consultants of a failed recommendation not to treat for corn rootworm
> >larvae.
> >
> >Crop consultants: Is there a recommendation you make frequently that
> >might
> >be made less risky by a low-cost insurance policy? If so, or for more
> >information, contact Tom Green, IPM Works, representing ACIC at 2322
> >Keyes
> >Ave., Madison, WI 53711. 608-255-9443, 608-255-9469 (fax),
> ><tagreen@compuserve.com> (e-mail).
> >
> >
> >************************
> >V. ACIC Meeting Schedule
> >
> >ACIC representatives will be attending the following events. If you
> >would
> >like to arrange a meeting to coincide with any of these dates, please
> >contact Megan Terebus of ACIC at 843-740-1325, 843-740-1331 (fax) or
> ><Megan.Terebus@agconserv.com> (e-mail).
> >
> >Oct. 18-21 Joint American Society of Agronomy, Soil Science
> >Society of
> >America and Crop Science Society of America Annual Meeting, Baltimore,
> >MD.
> >
> >Nov. 8-12, 1998 Joint Entomological Society of America and American
> >Phytopathological Society Annual Meeting, Las Vegas NV.
> >
> >Jan. 10-14, 1999 American Farm Bureau Federation Annual
> >Conference,
> >Albuquerque, NM
> >
> >Jan. 18-20, 1998 Wisconsin Fertilizer, Aglime and Pest
> >Management
> >Meeting, Middleton, WI
> >
> >Jan. 20-21, 1999 Maine Potato Conference, Presque Isle, ME.
> >
> >Jan. 20-24, 1999 National Alliance of Independent Crop
> >Consultants
> >Annual Meeting, Nashville, TN.
> >
> >Jan. 31 - Feb. 4,1999 National Association of Conservation Districts
> >Annual Meeting, San Diego, CA.
> >
> >Feb. 6-8, 1999 United Fresh Fruit and Vegetable Association Convention
> >and
> >Exposition, San Diego, CA.
> >
> >Feb. 8-10, 1999 New York State Vegetable Growers Association Annual
> >Meeting, Syracuse, NY.
> >
> >Feb. 18-20, 1999 Commodity Classic, Albuquerque, NM
> >
> >Mar. 28-31, 1999 North Central Branch Entomological Society of
> >America Annual Meeting, Des Moines, IA.
> >
> >
> >******************
> >VI. About ACIC
> >
> >ACIC is a private, non-profit organization working to develop new tools
> >to
> >make conservation objectives affordable and attractive to the
> >agricultural
> >community. Initiatives of the center include risk-reducing insurance
> >policies for conservation-enhancing management practices, tax
> >incentives
> >for wetlands preservation and mitigation, and innovative "trusts" and
> >"savings accounts" in support of wetland and grazing land conservation.
> >
> >ACIC is actively seeking additional opportunities for IPM and BMP
> >insurance
> >policies. Please contact ACIC for further details.
> >
> >
> >******************************
> >Thomas A. Green, Ph.D.
> >IPM Works
> >2322 Keyes Ave.
> >Madison, WI 53711
> >608 255-9443
> >608 255-9469 (fax)
> >tagreen@compuserve.com
> >
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