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Sharing The Land, Land Rent, and Money Commons and a Little on Conscious Evolution. International Union for Land Value Taxation Conference July 25, 2013 Gary Flomenhoft, Lecturer, Environmental Science Fellow, Gund Institute, U. Vermont. Precautionary Principle for Reformers. - PowerPoint PPT Presentation
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Sharing The Land, Land Rent, and Money Commons and a Little on Conscious Evolution
International Union for Land Value Taxation ConferenceJuly 25, 2013
Gary Flomenhoft, Lecturer, Environmental ScienceFellow, Gund Institute, U. Vermont
Precautionary Principle for Reformers
There is nothing more difficult to carry out, more doubtful of success, nor more dangerous to handle, than to initiate a new order of things. For those who would institute change have enemies in all those who profit by the old order, and they have only lukewarm defenders in all those who would profit by the new order.— Nicolo Machiavelli, 1490
Conscious Evolution-Riane Eisler
Dominator to Partnership Economy
DOMINATOR
PARTNERSHIP
Conscious Evolution-Eisler
Dominator to Partnership Economy
DOMINATOR PARTNERSHIP
CARING ECONOMYNEO-LIBERAL ECONOMY
Conscious Evolution-Paradigm Dialectic
Thesis Anti-thesis SynthesisDominator Anti-Dominator Partnership
Patriarchy Feminism Egalitarianism
Anthropocentrism Biocentrism Biospherism
Infinite Growth No Growth Sustainability
Capitalism Communism Caring, Justice, Geoism?
Ecological Economy = Throughput
ECONOMYLabor & Capitaltransform resources
LAND USE(sites)
DEPLETION(sources)
POLLUTION(sinks)
US Severances Taxes (rent): minerals, ores, fuels, forests, fisheries, etc.
(Source:http://www.ncsl.org/issues-research/budget/state-energy-revenues-update.aspx)
http://www.swfinstitute.org/fund-rankings/) Oil, gas, minerals, diamonds, copper, phosphatesEducation, development, pensions, dividends, etc.
Alaska Model: Alaska Permanent Fund(sub-surface minerals public property)
DIVIDENDS
2012 $878.00
2011 $1174.00
2010 $1281.00
2009 $1305.00
2008 $2069.00
2007 $1654.00
2006 1106.96
2005 845.76
2004 919.84
2003 1107.56
2002 1540.76
2001 1850.28
2000 1963.86
1999 1769.84
1998 1540.88
1997 1296.54
1996 1130.68
1995 990.30
1994 983.90
1993 949.46
1992 915.84
1991 931.34
1990 952.63
1989 873.16
1988 826.93
1987 708.19
1986 556.26
1985 404.00
1984 331.29
1983 386.15
1982 1000.00
Sink Rent=Greentaxes
Sink Rent
© Dr. Görres – www.foes.de July 2006 Economic Instruments – Exhibit 12
Energy taxes in Germany increased by 55 percent, additional increase in 2005 through truck toll
FINANCIAL EFFECTS OF 1999 ETR IN GERMANY (IN BILLION EURO)
Energy taxes 2003/2005
Energy taxes
18,7 bn €=
55% in-crease
Electricity (0 → 2,1 cents/kWh)
1998
6,5
5,0
1,8
16,0
22,8~ 34
2005
Road toll for trucks
+ 3,0
Fuel oil (4,1 → 6,2 cents/l)
Diesel (31,7 → 47,2 cents/l)
Petrol (50,1 → 65,6 cents/l)
Natural gas (0,2 → 0,6 cents/kWh)
ETR
~ 53 3,0 Road Toll (0 → 9-14 cents/km)~ 56
Total green taxes almost 90 Bn (incl. tobacco, land etc.)
1999 +4,3
2000 +2,52001 +3,02002 +2,5
2003 +4,3
© Dr. Görres – www.foes.de July 2006 Economic Instruments – Exhibit 13
Almost 90 Percent was recycled to citizens in order to reduce labour cost
1999 GERMAN ETR: RECYCLING OF THE RETURNS
Decrease in pension costs = 16 Bn relief for employers, employees and pensioners
Pension system
Environment Projects • Renewable Energies• Less CO2 in buildings• Tax break bio-fuels
Our Comment:• Great idea, in principle• Less than perfect execution
Economy
Govt.
Social Security
Budget use
Green Tax Shift-VermontVT Taxes-2004
buildings-NICU
Other fees
Tobacco ProductsOther general taxes
TOTAL AIR AND WATERTOTAL WASTE
TOTAL CHEMICALSSpeculative Gains Tax
current use property
land-NICU
CigaretteBeverageCaptive Insurance
Sales & Use
Telecommunications
Telephone CompanyBank Franchise
Insurance
TOTAL ENERGY
Estate Tax
Personal Income
Property Transfer Tax
Meals & Rooms
Corporate Income
Telephone Property
Green Tax Shift-Vermont
$500 Million Green Taxes
Green Tax Shift-Vermont2004-100% GREEN
TOTAL ENERGY36.0%
land 54.5%
TOTAL WASTE5.9%TOTAL CHEMICALS
0.1%
TOTAL AIR AND WATER3.5%
Carbon $300/ton
Land 9.6%
Waste $2/bag
Water 1c/gal>100gals
Chemproduct fee
$300 on pesticides
Capitalism 3.0-Barnes-Common Sector Trusts
VT Common Assets Trust Fund-VCAT
1. Protect certain common assets (such as air and water) for the benefit of present and future generations,
2. Establish a framework under which certain users of those common assets may be assessed fees
3. Deposited into a common assets trust fund
4. Managed so as to protect those assets and serve the interests of present and future people of the state.
VT Common Assets Trust Fund-VCAT
Legislation S.44-2007 MillerH.385-2011 Pearson
• Based on Barnes Capitalism 3.0• Collect revenue on natural and social
assets.• 25% minimum dividend for citizens
Vermont Resources-Sovereign wealth?
No oilNo natural gasNo coalNo precious metalsNo gemstonesNo sunNot much windWhat do have of value?
Vermont Resources
Cows Maple Syrup
VT Common Assets Trust Fund-VCATHow much is it worth?
Natural Common Assets:Air, Fish & Wildlife, Public Forests, Groundwater, Surfacewater, Minerals, Wind,
Social Common Assets:Internet & web, Broadcast Spectrum, Land Value, Financial System, Monetary System
(Pharmaceuticals, etc not included)
COMMONS-SOCIAL
Financial Speculation tax: 30% of value of public companies is from publicly created value: Regulation, Stock market, liquidity, etc.
Money Creation/Seigniorage: Fed ReserveQE3=$85B/mo = $1T/yearWhy not Basic Income? = $3164/person/yr)Isle of Guernsey-public money
Broadcast Spectrum: 98% given away free
Internet & web: US military-100% public funding
Land value: socially created
Public Trust Doctrine-VCAT
“As society moves forward, the list of assets that should belong to the people in common because the assets were inherited or created together, and therefore should be preserved in the common interest has expanded now logically to include natural assets such as undisturbed habitats, entire ecosystems, biological diversity, waste absorption capacity, nutrient cycling, flood control, pollination, raw materials, fresh water replenishment systems, soil formation systems, and the global atmosphere; and also to include social assets such as the Internet, our legal and political systems, universities, libraries, accounting procedures, science and technology, transportation infrastructure, the radio spectrum, and city parks. In enacting the regional greenhouse gas initiative (RGGI), the state of Vermont already has determined that the ability to discharge carbon into the atmosphere is an ability that belongs to people in common, and that needs to be managed in the common interest.”
Source categories emissions
(MMtCO2e)
2005 2030 (high)
2030 (low)
electricity consumption 0.64 4.12 0.97
residential, commercial, industrial fuel use 2.71 2.72 2.72 transportation 4.02 3.64 3.64 fossil fuel industry 0.02 0.03 0.03 industrial processes 0.44 1.24 1.24 waste management 0.29 0.23 0.23 agriculture 0.96 0.9 0.9 emissions total 9.08 12.88 9.73 Minus electricity 8.44 Statewide data from Vermont Governors Commission on Climate Change, available at:
http://www.uvm.edu/~vtcc/?Page=governor.html
Total Co2 Emissions in Vermont-Jennifer Kenyan and Beth Nolan
Sept 2008 Auction: $3.07/tonne x 8.44 = $25.9 millionHigh Estimate: $300/ton x 8.44 = $2724 million ($3gas)(>$4 gas tax: Austria, Belgium, Czech, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Portugal, Spain, Sweden, UK)
Fish and Wildlife Rent-Ross SaxtonTotal Revenue FY06
$7,880,00054%
$6,822,88446%
Tax
Economic RentTotal: $14,702,884
Figure 1a.
Low = $10.4 MillionHigh = $25.1
Forests-Mark Kolonoski
Public-State Forests
$3.2 millionState Parks
$6.58 millionFish and Wildlife
$180,486 (logging)Current Use Program
$17 millionTOTAL $27 million
Private-Forest-based manufacturing
$207.4 millionRecreation/tourism
$485 millionForestry and logging
$32 millionPaper and Pulp
$50 millionTOTAL $774 million
Revenue Generating Suggestions
• Leave public lands alone• Current Use withdrawal penalty• Depletion of Ecosystem Services (DES) tax• Impose auction and insurance bond regulation• Vermont Public Land Bank
• Low=10% of $32M from logging = $3.2M High = $32M
Groundwater Economic Rent-Colin McClung
Bottler Gallons/yearPristine Springs of Vermont
32,813,425/yr
Vermont Natural Water 970,000/yr
Clear Source Springs-Bottling
4,233,905
TOTAL88% profit
34,017,330=104.3 ACRE/FEET
REVENUE@$1.3M/ACRE-FOOT
$135.7 Million x 70% = $107.9 Million
High: $121.4M
Low
Current Private Revenue: • Public Supply: $ 35,000,000• Wastewater Permits: $ 1,692,350• Hydroelectric (dams): $ 164,775,527 • Thermoelectric (nuke): $ 316,000,000 • Recreation: $ 109,096,309 • Total: $ 626,564,186
Surface Water-Elliot Wilkinson-Ray
Surface Water-Elliot Wilkinson-Ray
(small discharge fee)
Rent
• Hydro:10% of revenue ($164,775,527) $16,477,553• End Local hydro subsidy: $ 6,000,000• Vermont Yankee 5c/1000gals: $ 7,600,000 • Public Consumption 5% (over 40,000): $ 639,000• Other uses: $.05/1,000 gallon • (24 million gallons/day) = $ 438,000• Total surface water rent: $ 31.2 Million(Low and High)
Vermont Mining Revenue 2005-Ian Raphael
Production/Extraction Value $96,800,000
Direct Mining Earnings 63,000,000
Listed Property Value 132,228,257
Property Taxes ( includes state tax of 1% and, average municipal tax of 1.79%) 3,678,990
Low = 10% severance tax =$9.68High = $16 million
Public Revenue from Wind Farms-Susan Salka
Assume 6.6 cents per kwh* selling price** x 689,850,000kwh/yr= $45,530,100 - $38,631,600 = $6,898,500.00
Assume 10.6 cents per kwh* selling price** x 689,850,000kwh/yr= $73,124,100 - $38,631,600 = $34,492,500
Assume 30.6 cents per kwh* selling price** x 689,850,000kwh/yr = $211,094,100 - $38,631,600 = $172,462,500
Land Rent in Vermont-Conor CaseyCurrent State Property Taxes are set at ~1.05%, with municipalities adding additional rates.
Current Revenue• Current Use Penalties
– $489,540• Speculative Gains Penalties
– $5,646,165.77• Property Transfer Tax
– $38,315,508.89• State Property Tax
– $696,371,326• Total Revenue
– $740,822,540
Current State Revenue from Land Taxes
State Property Tax
94%
Speculative Gains
1%
Property Transfer
5%
Current Use
Land Rent
Low=A state land tax of 5% would capture most if not all of this rent, collecting $1.07 billion- $740 = $329.8High = 10% = $2143M
(Altoona, PA 36% land tax)
Internet as a Common Asset-Ida Kubiszewski
Rent PotentialSource Revenue Rent > 7% of
profitPublic telecoms
$18.5 M profit $17 Million
ISPs $38.7M$6M profit
$3.3 M
Domain names
$130 M$18.4 profit
$9.3M
TOTAL ~$30 MILLION
Spectrum in Vermont-William Murray
“They Used to Rob Stagecoaches, Now they Rob Spectrum.”John McCain
Per Capita Value of Spectrum : $1002.12In Vermont (x629,908) : $625.23 million/yr*40% normal profit = $250 million/yrEconomic rent = $375 Million/yr (Low and High)
Financial Speculation-Liquidity trust 30% Barnes
Current Trading Projected Tax Rate Revenue(Annual Rates) Volume AfterTax Volume (both sides) Stocks $11 trillion $7.3 trillion 0.5% $36.5 billionGovernment Bonds $41.6 trillion $27.7 trillion 0.1% $27.7 billionCorporate Bonds $22.1 trillion $14.7 trillion 0.1% $14.7 billionFutures Contracts $100 trillion $66.7 trillion 0.02% $13.3 billionCurrency $200 trillion $133.3 trillion 0.1% $33.3 billion
(worldwide) (U.S. share = 25%)Swaps $22 trillion $14.7 trillion 0.02% $2.9 billionOptions Not available NA 0.01% NA
Total US Revenue (.25% RATE) $128.4 billion)x .21%
Vermont Revenue $269M Low (2000 Baker)$743M High (2009 Baker)
Dean Baker
Monetary System-2004
WHO CREATES MONEY? (SEIGNORAGE)
GOVT(CURRENCY)
$600 BILLION 7%
BANKS (LOANS w/int)
$8 TRILLION 93%
TOTAL $8.6 TRILLION 100%
Monetary System
VT BANKS (LOANS-2004)
$3,574,450,000
1% RATE $35,744,500
Until we have 100% reserve requirements and public Money
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