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A Global Warming Tax?

Kelly Phillips ErbOctober 22, 2007

The Dutch Government has a plan to flights leaving the Netherlands an amount equal to $16 for intra-European flights and $64 for intercontinental flights. The proposed tax is being touted as an “environmental tax” to offset carbon emissions from aviation.

However, the Association of European Airlines claims the tax revenues will not be used to fight environmental woes and will discourage air travel. The US seems to agree. “Study after study shows that taxes levied on environmental grounds are not a cost-effective means for reaching the desired environmental outcomes, but merely serve as revenue-raisers for governments,” said Nancy Young, U.S. Air Transport Association VP-environmental affairs. More recently, the Pacific Asia Travel Association (PATA) and the International Air Transport Association (IATA) have also publicly criticized the tax.

In addition to the concerns about decreasing air travel, many fear that the tax will prompt travelers to drive to airports in other countries, therefore generating more emissions.

Supporters of the tax claim that there no evidence to indicate that an aviation tax will have any impact on travel volumes. Those same supporters point to statistics that indicate that air travel will continue to increase, and there is no question that air travel emits far more greenhouse gasses on a per mile basis

Supporters also question why travel agencies and governments do not question the actions of oil companies, when in record-breaking years for profits, the price of fuel has nearly tripled.

What do you think? Fair or foul?

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Kelly Phillips Erb
Kelly Phillips Erb is a tax attorney, tax writer, and podcaster.
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One thought on “A Global Warming Tax?”

  1. Mary Emma Allen says:
    October 22, 2007 at 7:15 pm

    I think we’ll find more and more taxes added around the world under the guise of “global warming” since that seems to be the latest buzz word that is hypnotizing people and paralyzing their common sense.

    Reply

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