The substitution of revenues from taxes on pollution for revenues from taxes on productivity is known as:
A) pro-market tax reform.
B) capital gains tax reform.
C) environmental tax reform.
D) alternative minimum tax reform.

Question

Quizplus · Accepted Answer

The substitution of revenues from taxes on pollution for revenues from taxes on productivity is known as environmental tax reform. This type of reform aims to encourage activities that are beneficial for the environment by making them relatively less expensive, while also discouraging activities that harm the environment by making them relatively more expensive. This can be done by shifting the tax burden from labor and capital towards activities that generate pollution or carbon emissions.

The Substitution of Revenues from Taxes on Pollution for Revenues