Opinions
Category:
Europe and Canada
In 1996, Denmark went on to hit industrial producers with a $15 per tonne carbon tax, initially neutralized by cuts in payroll taxes.
What happened?
By 1998, manufacturers started shutting their doors due to high energy prices, and overall Danish carbon tax revenues started to fall along with manufacturing jobs.
At the same time, the cost of government programs rose significantly.
The government's solution incredibly was to - wait for it - subsidize electricity to select manufacturers and raise income taxes by lowering the income threshold on the country's top marginal rate.
By 2001, with economic growth hovering at one- seventh-of-one-percent, Danes making over CAD$50,000 paid 59 per cent of their income in taxes and had to cope with record electricity prices. The entire debacle led to a change of government that year, with the incoming government promising a tax freeze, followed by a tax reduction - including those taxes on energy.
Also filed under [
Tax Breaks & Subsidies]
Wind farm projects are growing like mushrooms after a rainy day, but the air is turbulent in the wind industry. Industrial wind farms are not as nice and green as promoters want us to believe. Like an opponent puts it : "There is more here than immediately meets the eye with industrial wind generators, and often the devil is in the details."