Greening the Budget and Earning a Double Dividend in the Process Q1. How Do you reconcile the introduction of environmental-based tax rate differentiation as well as new environmental taxes with the traditional objectives of fiscal reform: tax simplification, fiscal neutrality (not affecting behavior)? A1. This has to be done very carefully, as introducing new taxes that are related to the environment, can dramatically affect people’s behavior. If you levy new taxes on vehicles that …showed first 75 words of 1136 total…

…showed last 75 words of 1136 total…so that these problems will be fixed and at the same time the amount of pollution will decrease because people will not want to pay this environmental tax. They felt that the fiscal and environmental tax revenue was being wasted, they were dumping this money in to the system with no change, and there were no new innovative ideas. Everyone was only concerned with their sector, and was happy with the continuation of status quo.