How it Happened
Early on - a low level carbon price of
approximately £10-20/tCO
2 had been introduced across the
economy,
upstream - on all fossil fuel extraction and
importation. This had enormously reduced paperwork and increased
fairness.
Later a much higher carbon price had
been adopted – a huge gamble. But this had greatly encouraged
renewable electricity too, forcing UK to forge an indmitable
competitive advantage in renewable energy – the only type of
energy anyone still buys now!
When tax was imposed at £200/tCO2 this
also raised about £2000/person/year, or £100bn initially. The low
paid were protected by refunds based on historical usage for the
introductory years. Border tax adjustments solved to any
competitiveness impacts on any energy-intensive sectors deemed
essential during the transition, such as old hospitals.
Of course it wasn’t that easy.
The two biggest Mafia’s of their time, of all time, had to be exposed and brought to book:
- Big Oil (and Fossil), and
It had seemed unthinkable that either of these powerful, clever,
insidious and ruthless elites – barony’s - could ever be held to
account. But by repeated exposure of the truth and the injustice,
eventually even those ‘inside’ the elite anachronisms agreed peacefully
to phase out their restrictive practices.
The genius and the magic in how this happened was in the ‘armistice’
period – the transition years. Akin to an ‘Amnesty’ – those who had
stolen land in the past were able to give it back – without losing
everything – they were compensated for the loss of past (ill-gotten)
privilege. Typically previous land barons said they knew it was wrong,
knew it couldn’t last for ever, enjoyed it while it lasted, but were
actually happier now it had come to an end.
The same applied to the old oil and gas barons.
Back to the Proper Function and Purpose of
Taxation
Taxation has typically developed to raise money for fighting wars. SFR originated at the time of the start of
the great human war against carbon! The war for our children’s future.
In ancient Egypt one purpose of taxation was to build grand monuments.
The monument to SFR would be the ongoing health of the Earth itself –
our legacy – that future generations would enjoy.
In the past tax systems had sometimes redistributed income as an
ideological goal. This time equal shares and a level playing field was
the only way to unite the people to fight a common just war.
With SFR all private incentives were aligned with the public good.
Taxation no longer interfered with the individual.
The tax protected the welfare of children and supported autonomous forms of social organization.
The financial incentives embodied protected public property and the environment - and promoted intergenerational equity.
SFR created economic stabilising forces for climate and ecology.
The taxation of labour used to encourage the 'black' economy.
SFR gave rise to the new ‘Green and Grey’ and ultimately the Bright Green Economy.