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A Kaleckian wealth tax to support a Green New Deal
The Economic and Labour Relations Review ( IF 1.5 ) Pub Date : 2021-06-10 , DOI: 10.1177/10353046211017350
Susan Schroeder 1
Affiliation  

Green New Deals are being widely discussed as both a means to confront climate change and to improve aspects of social well-being. An important facet of the discussion is how they should be financed. The negative impacts of Covid-19 on national budgets and sovereign debt question whether the implementation of Green New Deals is feasible if austerity needs to be introduced to achieve sustainability. This article assesses whether a wealth tax based upon the work of Michal Kalecki could help avoid austerity measures and facilitate the introduction of Green New Deals. While wealth taxes have traditionally been defined on net worth or assets to reduce wealth inequality, the formulation is meant to be equitable by applying to gross wealth or assets. Estimates are calculated for the United States and turn out to be quite modest. The approach not only generates revenue to cover expected net interest outlays on national debt, but additional revenue to pay down portions of it and/or support green initiatives, such as Biden’s de-carbonisation policy. The article concludes with a discussion of challenges for the tax’s effectiveness.

JEL Codes: H2, H3, B2, B3



中文翻译:

支持绿色新政的卡莱克财富税

绿色新政作为应对气候变化和改善社会福祉的一种手段正在被广泛讨论。讨论的一个重要方面是如何为它们融资。Covid-19 对国家预算和主权债务的负面影响质疑,如果需要引入紧缩措施以实现可持续性,实施绿色新政是否可行。本文评估基于 Michal Kalecki 工作的财富税是否有助于避免紧缩措施并促进绿色新政的引入。虽然财富税传统上是针对净值或资产定义的,以减少财富不平等,但该公式旨在通过适用于总财富或资产来实现公平。估计是针对美国计算的,结果非常适中。该方法不仅产生收入以支付预期的国家债务净利息支出,而且产生额外收入以偿还部分债务和/或支持绿色倡议,例如拜登的脱碳政策。文章最后讨论了税收有效性面临的挑战。

JEL 代码: H2、H3、B2、B3

更新日期:2021-06-11
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