Pigouvian Externality Tax Suite (PETS)
Core Philosophy
Taxation should not penalise productive activity. Government sets its budget first in gold ounces. That fixed cost is then recovered by charging those who impose measurable costs on the commons. This is fundamentally different from conventional taxation.
The Tax Suite
- Heat Output Tax (HOT) – Primary Revenue Tool
The core budget-driven tax levied on annual thermal output of property footprints. Efficiency improvements shift the burden rather than reduce total revenue. - Refuse Output Tax (ROT)
Charges producers and importers for the full public cost of persistent waste handling and cleanup based on material flows. - Chemical Output Tax (COT)
Full cost recovery for harmful chemical emissions, discharges, and resulting environmental damage. - Light Output Tax (LOT)
Addresses artificial light pollution and sky glow. - Maritime Area Restoration Evaluation (MARE)
Levied on ports according to the environmental impact of shipping traffic in UK waters.
Mechanics & Budget-Driven Design
The system uses deliberate multi-year upward revenue flow:
- Districts levy deedholders → Counties → Central Government
- Budgets are set years in advance
- Any shortfall in secondary taxes (ROT, COT, LOT, MARE) is automatically covered by HOT
All taxes and budgets are denominated in troy ounces of gold. Budgets must be set years in advance to give each tier of government time to budget and pass on the charge. Measurement defines where the burden falls, not the final tax take, which is fixed by the budget in advance.
Transition Plan
A 20-year linear phase-out of the most distortive taxes (income tax, VAT, corporation tax, etc.), with PETS revenues ramping up concurrently. Small nuisance taxes are eliminated first.