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Therefore, removing the barriers to initiate more production and employment through the proposed money and land reforms may require two changes in the way taxes are levied, or else environmental devastation would likely increase: (1) a change from an income tax to a product tax; (2) an assessment of the costs to the environment included in this product tax. Hermann Laistner, (17) who explains this idea in detail in his book "Die Ă–kologische Wirtschaft" (The Ecological Economy), points out that income taxes eventually make labour more expensive and, therefore, makes more mechanization necessary. This encourages the consumption of finite resources through increasingly cheap consumer products. If a tax on products would be introduced, instead, which also would include the costs of the product to the environment, products would tend to become relatively more expensive. Combined with lower labour costs, this would reduce the pressure for more automation and more people could find employment. Right now, society pays twice if a labourer is replaced by a machine. It loses the income tax - as incomes of machines are not taxed - and subsequently pays unemployment benefits to the laid-off labourer. In addition, a sizable portion of work is carried out illegally at present, in order to avoid income taxes. If income tax were abolished, this shadow economy would finally become legal. While not causing any lowering of the standard of living to start with, because the increase in prices for products would be balanced by a taxfree income, this change would create very different and more ecologically-sound consumer behaviour in the long run. People would think twice before they got a new bicycle or car if it were a lot more expensive than to repair the old one. The change in taxation could be introduced gradually and would make sense even without the monetary and land reforms. It would support effectively a large number of demands and proposals from ecologists during the last decades. Combined with the two other reforms, this change would render redundant many environmental issues and "protection measures" while contributing to solving unemployment problems.

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Margit Kennedy (!) - Interest and Inflation Free Money  

Copyright 1995 by Margrit Kennedy) (Published by Seva International; ISBN 0-9643025-0-0; 1 2 LIST OF FIGURES:..................................

Margit Kennedy (!) - Interest and Inflation Free Money  

Copyright 1995 by Margrit Kennedy) (Published by Seva International; ISBN 0-9643025-0-0; 1 2 LIST OF FIGURES:..................................

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