“Tax shift” as a smart precondution for the formation of inclusive circular economy

Abstract

The author outlines the role of environmental or “green” taxes that are less burdensome for the economy than taxes on salaries or income taxes, with the description of the best examples of the 1990s (Sweden, the Netherlands).

The importance of Ex'tax and smart approach to the tax shift, which creates incentives for saving natural resources and outputting materials in a closed loop, are singled out. Reduction of taxes for labor leads to employment increase. Business models, in their turn, will focus on the wise use of resources, that is, they will become circularly oriented. It is investigated that the lowest taxes were introduced in Ireland, Romania, Cyprus, Poland. The highest taxes were in Austria, Belgium, and Sweden in 2016. Environmental taxes are the lowest in Luxembourg, Ireland, Germany and the Czech Republic, and the highest ones are in Denmark and Greece. It is proved that with the help of “tax shift” and mechanisms of circular economy an inclusive society is formed. According to the results of the analysis, it is possible to identify the countries in which this “tax shift” has already taken place. They are Lithuania, Romania, Slovenia and the United Kingdom. That is, from 2006 to 2016, these countries offer inclusive and circular business models that become the rule for their economy. After all, the corresponding tax shift is a key element for the disclosure of the social force of the circular economy. The concept of Cradle to Cradle is described in the article. It offers a truly viable alternative to the “development or conservation” dilemma, since it can contribute to the improvement of the natural ecosystem and at the same time promotes human social justice, that is, it forms an inclusive society in a global dimension. The circular production system is based on this concept. There are 3 basic benchmarks for the circular economy 2.0: inclusiveness of the population; formation of human value; the well-being of people. Inclusive circular models are outlined using Pay-As-They-Need, Pay-As-They-Grow, Paid-As-They-Care.