Six years of rising tax rates may sound pretty bad, but industry knew what it would be dealing with and could plan based on that. For instance, they could invest in water pollution control technology and processes to reduce their tax. In 1990, the effluent charges were amended and a new schedule of rates put in place. Again, predictability was ensured. This time, the rates would rise every two years, starting in 1991 and ending in 1999 with a new tax rate, which by that time will be more than seven times as high as the original rate in 1981.
Businesses face many unknowns when deciding what to research, what to expand and what to sacrifice.
Other ecological tax reform innovations are being tried out as well. One example with much promise for the future is the municipal recycling credits system in the United Kingdom. To alleviate problems of solid waste disposal in the United Kingdom, a program to stimulate recycling of household and small business waste was created in the Environmental Protection Act of 1990. By avoiding this micromanaging, government is able to achieve its goals with a minimum of fuss and individuals are given a maximum of flexibility. Green Taxes Should Complement Environmental Regulation Green taxes are an additional tool in the environmental protection toolbox, not a replacement for all environmental regulation.