Business Tax Reform and the Environment: Emissions trading as a tax reform option

by Clive Hamilton and Hal Turton

The purpose of this paper is to explore a number of feasible reforms to business taxation that go further than the Ralph review. It argues for the early introduction of a domestic emissions trading system as part of the tax restructuring program, in order to address our greenhouse commitments under the Kyoto Protocol. It recommends that tax revenues from this system be used to abolish or reduce payroll tax, thus leading to job creation.

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