Taxation and Personal Finance Essay Example | Topics and Well Written Essays - 750 words

Taxation and Personal Finance - Essay Example The current theory of â€Å"Green† taxation posits that the revenues received from the companies, industries or organizations that are guilty of emitting these greenhouse gases should be used to repair the environment that these gases have destroyed in one form or the other. This means that the taxes placed on the emission of the greenhouse gases are actually used to carry out researches and invest in alternative source of energy that are more friendly to the environment when compared to the use of the greenhouse gases. The current theory of green taxation is just like using a problem as an advantage to proffer a viable solution It is pertinent to note that business and corporate income taxes are taxes placed on the useful productive activity of a corporation or industry and should not be classified as green taxes. Green taxes are described as the taxes placed on the industrial activities that are capable of destroying the environment and these taxes are placed in order to reduce or put a stop to these activities (Taxation Trends in the European Union, 2009). The current theory of â€Å"Green† taxation has forced corporations and industries to invest less in environmentally dangerous sources of energies for their production. The concept of this â€Å"Green† taxation intends to generate a substantial revenue from the taxation of environmental degradable industrial activity that should reduce the taxation on gainful corporate and industrial activity that have done little or nothing to destroy the environment. If this theory of green taxation must be duly followed, there has to be an even balance between the damage done by the greenhouse gases to the environment and the taxation placed on the emission of the gases. The taxation of the gases would now seek to resolve the problems created by the greenhouse gases as earlier stated above. Finland became the first country to introduce carbon tax in 1990,