“Taxes are what we pay for civilized society”, Oliver Wendell Holmes, Jr. said in 1904. Throughout history, the definition of ‘civilized’ has changed -‐ and tax systems have evolved accordingly. In ancient Egypt (3000 BC) ‘labour’ was a synonym for ‘tax’ . Peasants provided labour to the state as a form of tax. Since then, taxation has evolved from crude systems where anything from crops, windows, doors and even beards could be taxed, to sophisticated -‐and complicated-‐ systems. Tax es have always ev olved, and we are about to enter a new era again. Over the last few decades, it has become clear that we as humans leave a significant footprint on earth. In fact, we live as though there were more than one e arth at our disposal. Global trends, challenges and yes, multiple crises, such as resource scarcity, climate change and water shortages signal us to reconsider the current economic and social dynamics. The idea of a ‘circular economy’ has gained more and more traction as a new systematic solution that could steer our production and consumption patterns in the right direction. Every reputable report on the topic concludes that one of the preconditions for a circular economy is a fundamental shift in taxes from labour to the use of natural resources. This would mean a major redes ign of our current tax system s. Challenging and complicated? Of course. Impossible? Of course not. History has taught us that much. For the sake of civilized society, it’s time we truly figure out how to enable economic growth, while keeping intact the very grounds upon which all prosperity is based; clean air, fertile soil, metals and minerals and all natural resources that enable us to flourish as human beings. The Ex’tax Project, together with Deloitte, EY, KPMG Meijburg and PwC picked up the gauntlet and went to work, trying to identify the fiscal possibilities of a funda mental update of our tax system. Their report New era. New p lan. Fiscal reforms for an inclusive , circular economy. Case study the Netherlands is a valuable and thorough study . It will help decision makers to continue to explore the adaptations our tax system needs to facilitate a circular economy.
