It's Time for the Long Distance Tax

by Peter LaVaute

We have the resources and infrastructure in place right now to implement a program that will significantly reduce the threat of climate change over the short and long term. Advances in freight transport coupled with low fuel prices have made it possible for corporations to find where the absolute lowest production cost of an item is and ship it to where the best markets are. In many situations, lax environmental laws and availability of low cost labor are the prime criteria for choosing a production location.

Prior to the industrial revolution and the capability of moving large amounts of goods over long distances, all localities and regions had to be largely self-sufficient. Now, the world’s population is migrating to urban areas making the bulk of humanity dependent on goods produced remotely – an extremely energy intensive system.

The key is to stimulate the return of sustainable local production of basic goods and services such as food and food processing, energy generation, housing construction and clothing. This would cut energy use, stimulate local economies, foster self-sufficiency and create a condition of true “homeland security.” Coupled with a robust conservation program aimed at reducing the energy expended for powering our homes and buildings as well as reducing energy for commuting and transporting goods over long distances, this would be an enormous step in addressing climate change.

With some relatively simple programming, the UPC or bar code system – used by nearly all retailers – would identify the origin of an item, whether it be broccoli or a Toyota Prius. It would levy a tax directly relating to how far away it was produced from the point where it was purchased. Items with many components which are sourced from various locations, such as cars, would have all their components entered into the program to arrive at an accurate rate.

The greater the distance an item travels from its origin, the higher the tax. The tax would be placed in a fund managed by a Regional Self-Sufficiency Commission.

In-Depth Ecolonomic Assessment

The first task of the Commission would be to do an in-depth Ecolonomic Resource Assessment to learn what is locally available in terms of natural resources, waste streams, agricultural, forest and industrial by-products. Sustainable technologies that use these resources as feedstock would then be identified and prescribed. The Positive Action Plan developed from this information would become the long-term foundation of a new sustainable local or regional economy.

The fund would finance the development of sustainable local enterprises that provide essential goods and services as well as conservation programs such as weatherization of buildings and public transportation systems. This would stimulate local employment and result in the reduction of commuting distances for the average worker.

The money generated by these businesses would stay in the community, further stimulating the local economy and increasing prosperity. The Distance Tax would assist in leveling the labor cost playing field assisting local businesses to compete with products produced in distant locations whose advantages are low-wage labor and a lack of environmental regulations.

Safety of Food Supply

One of the big issues in the news lately is the safety of the food supply since a large portion comes from abroad with little or no accountability in regards to the quality, labor conditions or the amount of environmental contaminants. The Distance Tax systems would require all the food to have its origin documented which would make tracking food borne illness and contamination easier.

The National Farmer’s Union is presently advocating “Country of Origin” labeling to begin to address the food supply source anonymity which now exists. The effort attempts to address the problem that domestic food producers are often at a competitive disadvantage in regard to food production and marketing from abroad.

I’m aware the Distance Tax smacks the face of globalization, but I believe it needs to be if we are to address climate change in a significant way. We must all become more self-sufficient and the reverse the trend of being dependent for basic goods and services on people and organizations located great distances away from where we live and work. The Distance Tax is a meaningful step, which would immediately finance the transition to sustainable future for all inhabitants of our planet.

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Peter LaVaute is Director of the Institute of Ecolonomics, based in Franklin, Missouri. Ecolonomics means that ecology and economy are two sides of the same coin.
Contact Peter: ecosense@howardelectricwb.com
www.ecolonomics.org/

FROM In Business, a SustainableBusiness.com Content Partner.