The C02 Tax Chatter

Basically, the German government has signed up to save the world.  And the best way to do that....is to tax people more. 

The current discussion is that a C02 tax would be created.  Per person (in the household), the amount would come to 35 Euro a year, per ton.  That's the amount in year one (if passed).  By 2030 (a decade away), that amount would escalate to 180 Euro a year.  No one says what would happen by 2040, but I would take a reasonable guess that it'll go to 300 Euro per person, per ton, per year.

The gimmick to this?  EVERYONE would have to pay (rich and poor). 

In general, what does this equal?  Gas (per liter) would go up 10 Euro-cents.  If you still use heating oil (instead of natural gas), you'd pay around 11 Euro-cents per liter.  Their estimate is for natural gas use would go up a cent for each volume.

So you go and look at grocery prices and all those odd things that you buy.....all of them would escalate.  That part of the story is usually left out by the journalists and the government folks.

The present discussion is that the incoming sum of money, into the billions of Euro.....would then be redistributed (gifted back) to particular people.  The current list?  Poor people (Hartz IV class or welfare folks), those in rural regions, those in sub-standard houses, etc.  How would you know you won't get the money back?  If you consider yourself in the working class or better.....you can forget about every single penny of the tax ever coming back to you.

Well....how much money is left after you gift these groups back?  That's the curious question which the journalists seem to skip over, and again....the government folks won't talk about this.  I would take a guess that it's higher than one billion Euro. 

According to the EU statistics of 2017.....each single German uses about 11.3 tons of C02 per year.  It's worth noting (using the same data table) that French and British use four tons of C02 per year LESS.  Why?  Again, this is not explained by journalists or political folks.  Some speculation is that heating oil users exist in Germany to a higher degree, and fuel useage is higher.....but it's a discussion that really isn't proven well.  I might go and suggest that the EU data table is a bit 'stewed' and might be over-dramatic.

But in this discussion....that four extra tons (per person) bothers the political folks, and they want to encourage (force) Germans to use less C02, and they want this 11.3 tons to drop down to the 7-ton level that France/UK use.

Why not offer incentives to the heating oil crowd to upgrade and go to natural gas?  That discussion isn't part of the talks....everyone seems very hot for more taxation, and after you hand the rural folks, and the lower-class their money....there's going to be tons (billions) to spend on other 'gifts' to the public. 

So per person, what does this mean?  My estimate is in the range 500 Euro per person, per year....in the beginning.  I'm adding the general tax, with the grocery increases, and the cost of living.  So a couple will have to find 1,000 Euro in their budget and just say adios to it.  In ten years?  Per person, 2,500 Euro per year (that's the raw tax with the cost of living on top of that).  Inflation-helper?  Yes.

If you are in the general middle-class....that trip to Australia that you dreamed about?  You better do it now, because in a decade, it'll be beyond your financial capability. 

Looking at a couple and trying to imagine 5,000 Euro laying around for more taxation?  That's something that would bother some folks.

So here's the curious end of my essay.  This is a Germany-only discussion.  How competitive would a company be in Germany....compared to Czech or Hungary, or Spain....in a decade?  Escalation of wages would occur, and taxes would be dumped upon industry as well.  If I were the CEO of a company making ten-billion a year in sales....I'd be forced to discuss moving the industry out of Germany, and to a non-C02 taxing country.  I hate to suggest it, but purely upon taxation.....they'd create a wave of open doors, and disgruntled tax-payers standing there with no one to blame but politicians.