RE: [greenyes] U.S. Trade Policy

["Reindl, John" <Reindl@no.address>]

Hi Megan ~

The Wisconsin Department of Revenue found that the tax breaks that Wisconsin
provides to forest lands are basically only subsidizing the timber industry.

I believe that if the subsidies were eliminated, the cost of virgin fiber to
the mills would increase and that recyclers would receive a higher price for
their paper. This would make recycling program more economical, resulting in
more scrap paper being recycled, and at the same time reduce the consumption
of fiber.

I am not in favor of giving subsidies; I am instead in favor of imposing
fees that reflect the cost of the environmental externalities.

I would hope that the WTO would take a more aggressive stand against
subsidies.

John 

> -----Original Message-----
> From: Megan Kershner [mailto:Mkershner@no.address]
> Sent: Wednesday, October 13, 2004 9:10 AM
> To: greenyes@no.address
> Subject: RE: [greenyes] U.S. Trade Policy
> 
> 
> I can't speak for all subsidized industries, but I do know 
> that current
> private forest tax breaks/subsidies in Wisconsin are about the only
> thing keeping private forests from turning into subdivisions.  Without
> incentives to do the right thing, who will?  Energy conservation is a
> prime example.
> 
> And then I have to ask myself - is it really the tax breaks and
> subsidies that is creating this waste product?  Will removing the tax
> breaks and subsidies change demand?  Maybe.
> 
> Megan
> Boise, Idaho
> 
> 
> >>> "Reindl, John" <Reindl@no.address> 10/13/2004 7:07:23 AM >>>
> On the issue of tax subsidies and the wTO, does anyone have any
> information
> about why the subsidies for mining and forestry are also not being
> brought
> before the WTO?
> 
> As a recycler, I am especially concerned about the subsidies to
> forestry,
> since paper and wood are the largest components of the material stream
> that
> we handle, and are the largest parts of what goes into landfills. 
> 
> Forestry not only receives massive subsidies in the US at the federal
> level,
> but also at the state and local level, through state and county
> ownership of
> forests that don't pay property taxes, income taxes or sales taxes,
> and
> programs to provide tax breaks for private forests, such as
> Wisconsin's,
> which has a price tag of somewhere around $50 to $100 million a year.
> 
> John Reindl
> Dane County, WI 
> 
> > 
> > I would like, if I may, to ask you a question concerning basic trade
> 
> > principles, in light of the U.S. position with regard to our Airbus
> dispute 
> > with the European Community.
> > 
> > If I understand our position in that case correctly, we argue that
> free 
> > trade under WTO rules is not whatever laissez-faire decrees, but
> rather
> "is 
> > about fair competition and a level playing field," as you  were
> quoted in
> the 
> > October 7, 2004 Wall Street Journal ("U.S., Europe Sue Each 
>  Other at
> WTO 
> > Over Aircraft Subsidies"). In that regard, it seems to be our claim
> that 
> > Airbus enjoys excessively large tax subsidies, creating an unlevel
> playing
> 
> > field on which Boeing cannot fairly compete. We, therefore, have
> petitioned 
> > to have WTO rule that the tax subsidies are an unfair trade 
> practice,
> 
> > subject to penalties.
> 
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