Don’t tax labour, tax raw materials!

With the ‘Delta Plan Taxes for a Circular and Social Economy’ 5 top consultancy firms come up with a long-term perspective for a future-proof economy in the year 2021. But one that requires a modified tax system.

Because of the consumer society, our economy grows on and on. We need fewer and fewer people to achieve the same production. And that with more and more raw materials, which are extracted from the environment or cause damage to it.

Back in 1994, Eckart Wintzen, founder of BSO/Origin and creator of the cellular philosophy, argued for taxing raw materials as “extracted value from the planet. And replace VAT (Value Added Tax) with BOW (Tax on Value Withdrawn).

‘Wherever we take something from the earth or do violence to the earth, we tax it.’ An interesting addition to this view is that Eckart Wintzen wants to reduce taxes on labor. ‘Entrepreneurs are going to make different choices and the economy is growing towards services and away from materials.’

What impact this view will have on food production remains to be seen. But it’s certainly worth taking stock of. The government’s turn?