Shifting taxation:

key to an inclusive,

circular economy

Femke Groothuis | The Ex’tax Project

Our tax system needs an update

to address the challenges

of the 21st century.

www.ex-tax.com

personeel

Labour taxes high: efficiency means saving on employees

containers

Natural resource taxes low:

unrestrained use

The Ex’tax proposal

International supporters of the Ex’tax principles

European Commission - since 1993

‘The tax burden must be redistributed

so as to lighten the burden on labour

and increase the burden on the use

of natural resources.’

European Commission (1993) Growth, competitiveness and employment.

Challenges and the ways forward into the 21th century.

.

€ 4.9 trillion in taxes per year

European Commission (2013) Taxation Trends in the European Union | EU-27 total tax revenues 2011.

51% on labour

European Commission (2013) Taxation Trends in the European Union | EU-27 weighted average 2011.

6% ‘green’ taxes

European Commission (2013) Taxation Trends in the European Union | EU-27 weighted average 2011.

0.3% on pollution, natural resources

European Commission (2013) Taxation Trends in the European Union | EU-27 weighted average 2011.

23 miljoen Europeanen werkloos

25.5 million Europeans unemployed

Eurostat (June 3, 2014) Unemployment statistics | April 2014

‘world needs 600 million jobs in the next decade’ (ILO)ILO: 600 million jobs needed worldwide

ILO (2012) Global Employment Trends 2012: Preventing a deeper jobs crisis.

Abundance of human capital

Scarcity of natural resources

Water scarcity is affecting

1.2 billion lives

UN (accessed 2014) Water for Life Decade.

7 million deaths annually

linked to air pollution

WHO (March 25, 2014) 7 million premature deaths annually linked to air pollution.

From a linear system…

…to a circular system

Urban mining R&D

Repair

Lease &

Maintenance

services

Redesign Take-back

systems

Labour-intensive business models

The tax system

is a barrier for business

to hire more people

and save resources.

Frequently asked questions

- How to maintain a stable income for government?

- What is the impact on businesses?

Ex’tax knowledge partners

Ex’tax Policy Toolkit:

The range of options

for a tax shift

Case study

The Netherlands

(focus group)

*Indicative

Case study

The Netherlands

(under construction)

What is the impact of a tax shift on businesses?

First impact analysis

& The Ex’tax

Project

Carbon emissions

Water

Social

contributions

- 31 multinationals

- 2012 data

Businesses are calling for carbon pricing

www.climatecommuniques.com

Ameren Corporation

American Electric Power Company

Apache Corporation

BP

Chevron Corporation

CMS Energy Corporation

ConAgra Foods

ConocoPhillips

Cummins Inc.

Delta Air Lines

Delphi Automotive

Devon Energy Corporation

Duke Energy Corporation

E.I. Du Pont

Entergy Corporation

Exxon Mobil Corporation

General Electric Company

Google

Hess Corporation

Integrys Energy Group

Jabil Circuit

Microsoft Corporation

PG&E Corporation

Royal Dutch Shell

Total

Wells Fargo & Company

Xcel Energy

Wal-mart Stores

Walt Disney Company

29 multinationals apply

an internal price on carbon ($ 6-60/ton)

CDP (2013) Use of internal carbon price by companies as incentive and strategic planning tool.

Toolkit for Business: risks & opportunities from a business perspective

business modellen

Business models adapt to market circumstance

Arbeid/ DIENSTVERLENING goedkoper: repareren loont

Lower labour costs:

repair & maintenance services

recycling fabriek

Lower labour costs:

recycling

Growth based on

human capital

Shifting taxation is key to an inclusive, circular economy

We welcome your

support and expertise

www.ex-tax.com