I brought up the hype going on with the German national government on the CO2 tax idea around a month ago. This essay goes onto the next level....whether the tax occurs, and the timing involved.
Presently, the Green Party, Linke Party and SPD Party are pro-CO2 tax. The FDP, CDU and CSU parties are asking more questions and only want to engage upon this, when all numbers (cost) are laid out and it makes sense for the economy. If you follow this in the German news.....some are suggesting that it's a waste of time unless the EU has the whole 'cart loaded', and proceeding.
The timing of the big talks? The CDU, CSU and SPD will meet on 17 July to have a lengthy discussion over a couple of topics, and this CO2 tax is one of them. If they don't agree, they will pack up and leave for the summer vacation with an open period to campaign in the three eastern German states. Nothing will likely be brought up about this topic again until after the three elections, and it might be January before the next round proceeds.
The effect of the EU election? Well.....it could reset the deck and create a dead-end to this discussion.
Presently, there are two models on the deck about how the tax would work (one involves the present and long-standing emissions trading program). This program hasn't been a big attention grabber. This was also the program that money-laundering was established back a number of years ago (by the Italian mafia). The other tax program idea is simply a fresh start view of CO2 taxes, but no one is sure about how much, or deep this structured tax program will go.
One journalist I noticed from last week talking over this....suggested that they ought to make up a number (say 10 billion Euro) which is destined for their 'pet-projects' and just make a fake-like formula to reach the 10 billion Euro. Course, one might view this and ask why only 10-billion.....why not aim for 100-billion and give away tons of free stuff to the public to make up for the tax.
The idea of making a CO2 tax that would lessen or correct CO2 creation? So far, I've noticed that virtually no one wants a sliding type program that helps to lessen CO2 creation. Most of this dialog is about taxation, with tons of funding going into a pot, and being returned to public projects (free railway and bus travel is often mentioned).
The idea that this all leads into a German government climate protection law (some massive solution 'party')? Well, yeah....that's the chief game being played out by Green Party, and the SPD political figures.
The potential that the CO2 tax occurs....creates a massive tax vehicle....ripples into a recession, and triggers some companies to make their products beyond the German borders? One could sit and think over the implications, and wonder about the competitive nature of German commerce, and if this CO2 tax would create a hefty anchor that stalls out both the CDU and SPD brands.
Germany has been awful careful over the past fifty years, and the 2008 economic 'stumble' had a significant impact upon the economy. I think that both the CDU and SPD parties would try hard to avoid a recession or create some tax dynamic that harms the public. But no one can explain the working character of this CO2 tax, and that ought to worry some folks.
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