Green Options » Taxes

Zero S and DS Electric Motorcycles are Now $1,000 Cheaper

Nick Chambers — Thu, 08 Oct 2009 19:35:10 +0000

Zero Motorcycles has just announced that they are the first electric motorcycle company to meet all US and Canadian safety standards as well as pass EPA certification allowing their bikes to qualify for major federal tax credits of 10% of the purchase price as well as a state sales tax credit.

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Protecting Municipal Green Programs is the Smart Choice, even During the Recession

Amiel Blajchman — Mon, 31 Aug 2009 15:33:17 +0000

As the recession has forced municipal governments all over to tighten their belts, municipally run green initiatives have been some of the programs on the chopping block. While there are no programs that shouldn’t be looked at during these budget exercises, it is important for municipal leaders to ensure that they do not lose sight of the fact that while these programs have up front costs, many of these programs will have positive impacts on tax revenues and/or reducing municipal costs.

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Green Buyers, Taxes based on Environmental Friendliness, and Carbon Footprint Labels on Products in the EU

Zachary Shahan — Mon, 17 Aug 2009 12:57:34 +0000

In the results of a “Eurobarometer” survey recently released by the EU, we can see some progression in the evolution of green consumerism. EU citizens are taking the environment into account when purchasing products, according to the survey. They are also interested in putting carbon footprint labels on products. And what about green taxes?

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The Financial Angle: Environmentalism Still Driven By Money

Dave Levitan — Thu, 09 Apr 2009 19:04:30 +0000

The stimulus package approved in February contains items aimed at making everyone an environmentalist. Well, let’s say practical environmentalist. By offering tax incentives for a variety of home greening initiatives, Congress managed to both raise and lower my spirits around environmental issues: it’s great that people will have reason to save energy and live more efficiently, but I hate that the reason has to be money before anyone pays attention.

As reported in the New York Times, the green measures homeowners can take and get paid for it include home-shell improvements like better windows and insulation all the way up through solar cells on rooftops and buying a hybrid vehicle. Overall, individual tax payers can earn up to $1,500 in tax credits for these types of initiatives.

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EU Slaps Anti-Subsidy Biodiesel Tax on US Producers

Clayton B. Cornell — Thu, 05 Mar 2009 17:23:01 +0000

On March 13, the European Union will impose a counter-subsidy tax on U.S. biodiesel producers for “dumping” biodiesel on the European market.

European producers have been complaining about cheap imported biodiesel for quite a while, and it looks like a key European trade panel finally took action. The tax will be specific to each biodiesel producer:

ArcherDaniels Midland: 86 cents per gallon;
Cargill: 90 cents;
Imperium Renewables: 96 cents;
Green Earth Energy Fuels: 93 cents;
World Energy Alternatives: 96 cents;
Peter Cremer North America and remaining biodiesel producers will pay $1.36 per gallon.
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“We Will Recover”: President Obama On The Economy

Reenita Malhotra — Wed, 25 Feb 2009 15:01:56 +0000

This post contains additional media. Click here to view the full post.

Watch the speech that President Obama delivered to the nation last night. (MSNBC)

President Barack Obama gathered politicians and the public last night to talk about how to avert the worst economic disaster in since the depression through his plan to improve health care, schools and the environment.

The president recognized the enormous impact of the recession and pledged to rebuild the United States of America to emerge stronger than before.

Here is what he said about the main issues on the American Recovery and Reinvestment Act which has recently become law.

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Obama to Slash Federal Deficit by Withdrawing Troops and Raising Taxes on Rich

Jennifer Lance — Mon, 23 Feb 2009 23:41:58 +0000

It seems unbelievable that after approving a $787 billion Economic Stimulus Package, President Obama could keep his campaign promise to reduce the federal deficit, but that’s exactly what he plans to do.

Thanks to the Bush administration, the current US deficit is over $1 trillion (not including the economic stimulus package). Obama plans to cut this deficit in half by 2013. Is this even possible?

President Obama has stated in discussing the economy:

No single piece of this broad economic recovery can, by itself, meet the demands that have been placed on us. We can’t help people find work or pay their bills unless we unlock credit for families and businesses. We can’t solve our housing crisis unless we help people find work so that they can make payments on their homes. We can’t produce shared prosperity without firm rules of the road. And we can’t generate sustained growth without getting our deficits under control. In short, we cannot successfully address any of our problems without addressing them all. And that is exactly what the strategy we are pursuing is designed to do.

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Evading Taxes Is “Unamerican” : Swiss Banks Come Clean

Reenita Malhotra — Thu, 19 Feb 2009 15:19:42 +0000

I.R.S. Commissioner Doug Shulman warned U.S. taxpayers hiding money overseas that it was time to come clean with Uncle Sam.

This is what was implied by the Obama-Biden Presidential Campaign. Too bad that many of President Obama’s team of advisers, initially touted for its wealth of experience and qualifications, have come under the radar for this very “unamerican” activity. Nancy Killefer nominated for chief performance officer, Treasury Secretary Timothy Geithner and health czar-designee Tom Daschle are all examples.

In the Vice-Presidential debates, Jo Biden had also hinted that Americans with money abroad were “unamerican.” What he implied was not merely the fact that they had money abroad but that it was stored in undeclared bank accounts and that they did not pay tax on interest earnings.

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Taxing Soda to Take on Obesity in New York City

Natasha Mooney — Wed, 17 Dec 2008 02:28:19 +0000

One in four New Yorkers is obese, and soda is America’s hottest scapegoat. New York City may implement an 18 percent sales tax on soda and sugary drinks in the name of reducing obesity and raising money for health programs.

This proposal has sparked debate about the the efficacy of the tax and the potential harm to businesses. According to the New York Times, this tax would decrease soda consumption by 5 percent and would raise over $400 million per year.

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Live Online Debate Today: The Auto Industry Bailout

Nick Chambers — Wed, 29 Oct 2008 16:01:39 +0000

The US auto industry’s woes are well known — we’ve covered them here at Gas 2.0 many times — but are these companies deserving of taxpayer money for a government bailout, or should they be left to deal with a mess that they mostly created?

This is the question that will be debated live on NPR.org today at 3 PM EDT (19:00 Greenwich Mean Time).

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Election Countdown: Obama or McCain For A Green Economy?

Reenita Malhotra — Wed, 22 Oct 2008 02:27:11 +0000

With fourteen days left until the U.S. presidential election, the heat is on. As much as all eyes are on the candidates, everybody’s pulse is on the economy. People all over America are wondering who will better serve the U.S. Economy and bring it to where it needs to be. What are the candidates saying?

John McCain says that Barack Obama’s tax policy is not conducive to building a strong economy. Obama says he wants to spread the wealth around. Joe Biden calls it “patriotic” for the wealthy to pay taxes, Joe The Plumber calls that socialism.

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Obama Vs. McCain: Who Will Better Serve the U.S. Economy?

Reenita Malhotra — Thu, 16 Oct 2008 03:40:02 +0000

The word was that both candidates had prepared meticulously for the final presidential debate.

Obama had a three point strategy:
1. To continue exactly as he has been without making any mistakes now.

2. To close the stature gap; to prove wrong those who still believe that Obama does not have the experience or judgment that McCain has.

3. To show America how he would address the issue of economy

McCain’s debate strategy:

1. To attack Obama’s association with William Ayers without being offensive to the extent where he would turn people off

2. To show America how he would address the issue of economy

After another tumultuous day in the market with the worst one-day percentage declines since the crash of 1987, addressing the state of the U.S. Economy was supposed to be foremost for both candidates in an effort to win the votes of undecided and independent voters. Advisers for each candidate said that he would use the final debate to lay out his vision for the country and promote his economic policies while drawing differences with his opponent.

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Obama vs. McCain: Who Will Better Support Joe The Plumber?

Reenita Malhotra — Thu, 16 Oct 2008 03:29:42 +0000

In the final presidential debate, the issue of the economy was all-pervasive. After another tumultuous day in the market with the worst one-day percentage declines since the crash of 1987, it was up to each candidate to use the final debate to lay out his vision for the country and promote his economic policies while drawing differences with his opponent.

McCain addressed his comments to Joe Wurzelbacher, a plumber who confronted Obama about his tax policies at a recent Obama rally in Toledo, Ohio. For a considerable amount of time, McCain and Obama debated over who would do a better job for “Joe the Plumber.”

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A Tax on Plastic Untensils? How Would You React?

Robin Shreeves — Wed, 17 Sep 2008 13:33:15 +0000

Starting next year, France will institute a “taxe pique-nique,” a tax on plastic cups, knives and forks, and non-biodegradable paper plates and napkins. The goal, of course, is to discourage institutions and individuals from buying these one time use products that are harmful to the environment.

According to the Telegraph

A tax of 90 cents (71p) per kilogram (2.2 lbs) will be placed on plastic and paper throwaway cups from next year, aimed at cutting the average 360kg (793 lbs) of rubbish generated per person per year in France.

This concept of imposing a tax, or a levy as the French environment minister, Jean-Louis Borloo calls it, on environmentally unfriendly products is not new in France. They already have what is known as “bonus-malus” system which places higher taxes on high polluting vehicles and gives tax breaks for environmentally friendly cars.

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Obama Hood: Taxing Big Oil to Give Americans Another Stimulus Check

Jennifer Lance — Wed, 27 Aug 2008 08:37:50 +0000

Unemployment rates in the United States hit a four-year high in July, and inflation rates have risen 1.32% since January 2008. In fact, economists believe inflation is the greatest threat to the US economy and worry the energy-driven rise in prices will become permanent. Senator Obama’s response to the dire economic outlook is an “Emergency Economic Plan” that would take from rich oil companies experiencing record profits and give back to the American people in the form of stimulus checks, as well as invest $50 billion in states and infrastructure.

Obama’s Emergency Economic Plan

Unlike McCain, who can’t remember the price of gas or how many houses he owns, Obama recognizes working Americans are struggling. In response to the current economic crisis, Obama’s Emergency Economic Plan offers both long and short term solutions. In a move reminiscent of Robin Hood, Obama would take from rich oil companies and give to the American people. The emergency plan also includes a $50 billion stimulus package designed to save 1 million jobs.

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VW Clean Diesels Get $1,300 Federal Tax Credit

Clayton B. Cornell — Thu, 31 Jul 2008 13:43:25 +0000

It looks like the new line of clean diesels from VW, including the new Jetta TDI and SportWagen, will be eligible for a $1,300 Federal Income Tax Credit.

VW made the announcement earlier in the week after receiving notification from the IRS that clean diesels would meet the “Advanced Lean Burn” motor vehicle income tax credit.

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Low Impact Living: Great New Resource for Green Rebates, Tax Incentives

Low Impact Living — Tue, 27 May 2008 14:33:53 +0000

Editor’s note: This short post from our friends at Low Impact Living points you to a (literal) gold mine of information on incentives for greening your home. Check it out: that energy-efficient upgrade to your home may be even less expensive than you imagined. This post was originally published on Monday, May 19th, 2008.

We want to let you know about an excellent new resource available to you– GreenMadeSimple.com. This site has created a very comprehensive database of green rebates, tax incentives and free offers across the US.

Their zip-code guided search allows you to find incentives and deals related to energy-efficient appliances and lighting, solar power, hybrid and alt-fuel vehicles, and more. The database includes federal, state and local incentives. Just put in your zip code and prepare to go green and save money.

Here are some examples of the jewels you’ll find:

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May Day Means Payday for the US Government: Instead, Start Your Own Green Business to Make the World a Better Place

John Ivanko — Thu, 01 May 2008 03:10:55 +0000

May 1: May Day.

For the average American working for a paycheck, May Day — a pagan spring ritual where you dance around a Maypole — marks yet another, less festive occasion.

From the first of January until around the first of May, all the money many of us will earn goes to pay our share of income tax to the US government.

Kiss those months — that money — goodbye (the present tax stimulus package is really just a refund).

We followed the advice of our parents, as most children do: get a good education, go to college and get a job — a nice, secure, well-paying one, with great fringe benefits, stock options or profit-sharing. But the bimonthly paychecks — after the government gets its share for income, Social Security and Medicare taxes — aren’t enough to keep up with the bills. Even with raises and promotions, many of us feel that we keep getting further in the hole, since the more we earn in earned income, the more it’s taxed. The reality is that the system is largely devised this way, not to tax the very rich but to exact a fee on the middle class and poor to keep these wage earners on the treadmaster of a job — or “promising career.”

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Report from Nobel Conference - Heating Up: The Energy Debate

Maria Surma Manka — Fri, 05 Oct 2007 13:14:54 +0000

Every year, Gustavus Adolphus College in tiny St. Peter, MN holds a Nobel Conference, authorized by the Nobel Foundation of Stolkhom, Sweden. The conference brings together renowned experts to discuss timely issues, like aging or globalization. This year, it was “Heating Up: The Energy Debate.”

I attended the two-day event, which delivered in its round-up of impressive energy and global warming experts: Nobel Laureate in Physics Dr. Stephen Chu, biofuels expert Dr. Lee Rybeck Lynd, peak oil expert Ken Deffeyes, economist Paul L. Joskow, polar explorer Will Steger, hydrogen expert Joan M. Ogden, and James Hansen, Director of NASA’s Goddard Institute for Space Studies.

While at times the science got a bit thick, the message from all of the lecturers was clear: Global warming is urgent, we need to do something NOW, and many different solutions will get us there.

I was most interested to hear from Paul L. Joskow, an MIT economist who discussed the best methods for regulating carbon dioxide (CO2), a major contributor to global warming. Many politicians favor a cap-and-trade policy, in which a limit on CO2 is determined and then tradable/sellable permits to pollute are issued to utilities and industry. Economists, on the other hand, generally prefer a carbon tax that simply taxes CO2 at a certain rate.

Although an economist himself, Joskow argued that a cap-and-trade policy is the best way to create a market for CO2 and drive down emissions. First of all, a cap-and-trade policy is politically feasible, and making sure it actually has a chance of passing Congress in our lifetime is the most important thing to slowing global warming. Secondly, a cap-and-trade plan links the U.S. with other nations (and other states) that have already started down this path, thus creating a global solution to a global problem.

While economists favor a carbon tax that the feds could ideally use to cut taxes in another area, like income, Joskow said “perfect the enemy of good.” Sure, in a perfect world we would tax bad stuff and never tax good stuff (like working). But the urgency of global warming calls for a good system that is feasible now and gets us in sync with the rest of the planet. And the best system for that is a cap-and-trade policy.

Joan M. Ogden lectured on a hydrogen economy, although her fellow panel discussion presenters were skeptical of using hydrogen as a fuel source, at least in terms of it being ready fast enough to fight global warming. Although no option should be taken off the table, hydrogen could play a more important role in bettering existing technologies (like ethanol production) rather than creating an entirely new infrastructure.

Dr. James Hansen – you may remember him from his accusations that NASA officials edited his global warming reports – said that if someone is seriously concerned about climate change, any elected official they vote for should agree on three principals:

1) A moratorium on traditional coal-fired power plants (until we can sequester the CO2, building more plants moves us backwards)

2) Policies that encourage more renewable energy

3) Incentives for energy efficiency.

With the clean technology here but the leadership lacking, the issue of urgency was paramount throughout the lectures. In fact, I thought the statistics and scenarios put forth more dire than those I normally read in the media. More than one expert prefaced a recommendation with something like, ‘A year ago I would’ve been laughed out of the room for saying this, but now I can say that what we need to do is…’ The extensive media attention on global warming, along with some serious dialogue and action by the business sector and politicians, have made it “safer” to talk about the true consequences and costs of global warming without immediately being labeled a nutcase.

For example, MIT economist Paul L. Joskow said that any sort of carbon regulation is going to raise our utility bills “and anyone who tells you otherwise is lying.” With a cap-and-trade policy that sets CO2 at $50 per ton (a price he thinks is likely), it could drive up utility bills 40-50%. But this would not happen over night: Any measure passed by Congress would give utilities several years to implement efficiency programs to soften the landing. But the message was still clear: This isn’t going to be easy, but we can do it.

Polar explorer Will Steger, who has been traveling and studying the arctic and Antarctic regions for 40 years, gave an eyewitness account of global warming’s effects at the poles (in May I interviewed him about his most recent trip). I’d heard his talk several times, but there was a big difference this time: He showed a slide of polar bear and then said in his quiet-but no-BS –sort-of-way, “This is our friend the polar bear. I’m afraid there’s nothing we can do for them – they will go extinct. I couldn’t say that 18 months ago to people, but now I am.”

Despite the wake up calls – no use in sugarcoating at this point – it was still uplifting to know that some of the planet’s smartest people are working on this and elected leaders are slowly getting the message.

Now, it’s time for the rest of us to get to work. For starters, check out Will Steger’s “Template for Action,” Lighter Footstep’s “10 First Steps,” or the Union of Concerned Scientist’s “How You Can be Involved.”

Which Sort of CO2 Regulation is Best?

Maria Surma Manka — Wed, 19 Sep 2007 13:10:36 +0000

While voters, businesses, and politicians are calling for carbon regulation, exactly what that regulation would look like is far from decided.

Carbon taxes and cap-and-trade systems are the two most-cited proposals for cutting carbon dioxide (CO2), a major contributor to global warming. Supporters argue over which plan would be the most efficient method of cutting emissions while allowing for flexibility in the economy.

A carbon tax is a tax levied on CO2 emissions. Those who favor a carbon tax say it will drive innovations and technologies that allow for the same amount of work to be done with less pollution, and decrease the demand for products that are dirtier and thus more expensive. Critics point out that a tax would have a harsher impact on the poor, while others argue that carbon tax revenues could be used to lower other taxes, like income taxes or payroll taxes.

A carbon tax also makes many elected officials nervous: New taxes, fees, or whatever you want to call them, are rarely popular with voters. One notable supporter of carbon taxes — although he’s not running for office anymore — is Al Gore. He has promoted a carbon tax in addition to implementing a cap-and-trade program.

A cap-and-trade system requires an overall cut in emissions. Companies that cut emissions further than required are issued permits that they can then sell to companies that can’t or won’t cut emissions far enough.

Promoters of cap-and-trade say that the system provides an incentive — rather than a heavy-handed tax approach — to cut emissions because companies can sell the excess permits. It also requires a definitive limit on emissions, while some are afraid that a carbon tax would simply drive companies to pay the fines, pass the increase along to consumers, and keep on polluting. Companies like GE, DuPont, Duke Energy, and Toyota back a cap-and-trade policy, as do many environmental groups and labor unions. Presidential candidates like Hillary Clinton, John McCain, and Barack Obama also prefer it.

This fall, Congress could see a slew of measures to cut CO2. Senators Joe Lieberman (I-CT) and John Warner (R-VA) are planning to propose a cap-and-trade bill. Representative John Dingell (D-MI) is expected to introduce a carbon tax proposal — not in the hopes of actually passing it, but rather just to show how unpopular such a tax would be.

San Francisco Chronicle
Wall Street Journal, via Environmental Economics