Sunday Morning Links

This and that for your Sunday reading.

- Kevin Drum writes about the need to address the climate crisis as a war for the future of humanity. And Will Wade reports on new research showing that we'll earn back more than the price of a rapid transition from fossil fuels to clean energy within less than a decade. And Ashley Martin discusses the need to combine climate action with social equity.

- Peter McCartney questions the contrived outrage from the oilpatch at the Lib government which has gifted it an eleven-figure pipeline. And Scott Schmidt laments the UCP's choice to use tens of millions of public dollars on an evil-clown-shoes war room rather than helping Alberta's people, while the Canadian Press reports on the combination of deception and intimidation that's served as its modus operandi.

- In a similar vein, Jessica Scott-Reid questions why Alberta's meat producers are pushing for "ag gag" laws which will prevent anybody from knowing the truth about any claims to humane treatment of animals.

- Finally, Andrew Jackson writes about the growing international push for a more progressive tax system, including the latest book by Emmanuel Saez and Gabriel Zucman:

In recent years, progressives and social democrats have begun to embrace a much bolder tax fairness agenda than was the case even five years ago. This is especially true in the United States where Democratic Presidential candidates Bernie Sanders and Elizabeth Warren have both made the case for a significant tax on large holdings of wealth, the closure of personal tax loopholes for investment income such as stock options, and serious corporate tax reform. In the 2019 federal election, the NDP similarly called for a wealth tax, higher taxation of capital gains in the personal income tax system, and a higher corporate tax rate.

These proposals counter the conventional wisdom that globalization forces countries to lower corporate and personal income taxes in order to attract mobile capital and highly skilled labour. It is indeed the case that the tax “burden” in most advanced economies has shifted from taxation of capital and the affluent to taxes on labour through regressive sales and payroll taxes, and lower income tax rates for the top 1% over the past two decades or so, even under supposedly progressive governments.

However, tax experts Emmanuel Saez and Gabriel Zucman argue in a new book that the issue of fair taxes is deeply political and that we can reverse the trend by pushing for real change...
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(T)hey argue that countries should agree to not just to limit profit shifting, where some limited progress has already been made, but also to apply a minimum rate of corporate income tax. While this could be challenging, it is mainly very small countries who are most opposed. Big countries acting together should and could stop the erosion of the corporate tax base if they were prepared to stand up to the global elite.
 
Saez and Zucman are also major advocates of adding a wealth tax to our current arsenal of fair taxes, to be levied at a low but rising rate on very large fortunes. The aim would not be just, or even most importantly, to raise revenues, but to prevent the accumulation of huge fortunes which give the ultra rich far too much power and undermine democracy. Again, they believe that such a tax could be successfully levied in the United States, noting that the New Deal of the 1930s stretching into the post Ware period was deliberately intended to block the excessive accumulation of wealth.

The massive shift of taxes away from labour to the owners of capital in the US has been nothing short of staggering, undermining the fiscal base needed to support social programs and public services and exacerbating mounting inequality driven by the market economy. A major shift of direction is needed, and Saez and Zucman provide us with a well-documented analysis of tax injustice and a guide to needed reform.