For what energy, climate, environmental or other policy purposes should tax money from the excess profits of companies in the mining, energy and fuel sectors made in 2022 be used in connection with exploiting the situation that has arisen in the context of the energy crisis arising from the war in Ukraine in 2022?
In some countries in Europe, taxes have already been introduced in autumn 2022 on the excess and historically highest windfall profits of companies in the mining, energy and fuel sector obtained in 2022 in connection with the exploitation of the situation that has arisen in the context of the energy crisis derivative of the war in Ukraine in 2022. Unfortunately, some of the countries that called for the introduction of economic sanctions that increased the scale of this crisis and, at the same time, countries with an energy sector built on an archaic model based mainly on the combustion of fossils, nevertheless did not introduce this tax. This is still the case, for example, until February 2023 in the country where I operate. In connection with the publication of historically record profits of mining, energy and fuel sector companies operating in Poland and controlled by the government, obtained in 2022, as well as increasing criticism of opposition political options, it was reported in the media that once again the government is back to considering the possible introduction of the said taxes on excess profits. In my opinion, the money raised from taxes on excess profits made by companies in the mining, energy and fuel sectors in 2022 should finance new projects for developing renewable and zero-emission energy sources in order to speed up the green transition of the energy sector. In this way, the process of achieving a zero-carbon economy, a sustainable closed-cycle economy, an economy characterised by a high level of autonomy and energy security, meeting sustainable development goals will be accelerated and the scale of care for the state of the environment, the biodiversity of natural ecosystems, protection of the biosphere and the climate will be significantly increased. In addition, air quality will be significantly improved, the level of environmental pollution will decrease, etc.
In view of the above, I address the following question to the esteemed community of scientists and researchers:
For what kind of energy, climate, environmental or other policy purposes should the tax money from the excess profits of companies in the mining, energy and fuel sector obtained in 2022 be used in connection with the exploitation of the situation that has arisen in the context of the energy crisis derived from the war in Ukraine in 2022?
What is your opinion on this topic?
What is your opinion on this subject?
Please respond,
I invite you all to discuss,
Thank you very much,
Best wishes,
Dariusz Prokopowicz
All taxation ought to be used for the well-being of the populace of the country involved. The allocations made then needs to be challenged in open, democratic forum. Trans-border taxation is a different matter, but ultimately must also be open to challenge. The AGW swindle is a good example of taxation without accountability: open debate has been quashed in most of the western world and vast amounts of wealth wasted without anyone being held responsible. The political trick is to use "experts", "Scientists" etc to hide behind.
The use of tax money from excess profits of companies in the mining, energy, and fuel sector obtained in 2022 could be directed towards various energy, climate, environmental, and policy purposes. One possible area of focus could be the development and deployment of renewable and zero-emission energy sources, as you have mentioned. This could help to reduce dependence on fossil fuels, decrease greenhouse gas emissions, and contribute to achieving global climate goals.
Another potential use of the tax money could be the promotion of energy efficiency measures, such as building insulation, energy-efficient appliances, and smart energy management systems. This could help to reduce energy consumption and costs, while also improving the overall sustainability of energy use.
Additionally, the tax revenue could be used to fund research and development in clean energy technologies, as well as support the growth of small and medium-sized businesses in the renewable energy sector. This could help to create jobs and drive economic growth, while also contributing to environmental goals.
Ultimately, the specific policy purposes for which the tax money should be used would depend on the priorities and goals of the government and society in question. However, given the urgent need to address the challenges of climate change and transition to a sustainable energy system, it would be important to direct the funds towards activities that support these objectives.
If the national economy were in better equilibrium that at present these excess profits would become part of the interest on invested capital and presumably the prices of the associated shares in the company's would have previously increased so that the excess part would have been absorbed. However, since the situation is one of national monopolization, this extra income should be used for providing better health services and in improved education of the poorer parts of the community.
A long-term use could be for the purchase of sites of useful land by a national site ownership company for leasing to entrepreneurs that would now be able to afford them (due to reduction in the cost compared to privately demanded ground- rents from monopolistic landlords), enabling more employment to be possible and cheaper goods to be produced.