Irish Examiner view: Same fate for society and economy

Tax as a foil to climate collapse

US Treasury Secretary Janet Yellen said a mechanism to help more countries tax multinational companies may not be ready for consideration until spring 2022.

That eternal debate about whether we live in a society or an economy is having a moment. That debate, as it always does, is focused on the relationship between business and citizen, the social and environmental impact of businesses, the hotly-contested obligations of business. Societies’ obligations to businesses too. All of these issues coalesce in tax policies, their reach and their power to deliver and sustain progress. That more and more societies, even post-Trump America, are trying to imagine tax policies that will better serve all citizens reinvigorates the debate. That tax changes are increasingly the levers behind efforts to, even at this 11th hour, avert climate chaos gives the debate unprecedented urgency.

In May, the OECD published an analysis focused on Ireland. It said we need to reconsider domestic water charges, increase waste fees, and implement congestion charges to meet survival targets. The Environmental Performance Review, in logical if difficult proposals, recommended removing Vat exemptions on fertilisers and animal feeds, as well as the tax concession on fuel used in farming. There were other suggestions too, most of which were dismissed out of hand as revenue-gathering measures rather than a foil to destructive, unfettered consumption. We have, it seems, some way to go before we fully accept the depth of our difficulties and the scale of response required.