A few months ago i invested some money in a mutual fund which specializes in environmental industries. It calls itself a “green” fund. I made a nice profit on it and i hope that it will continue this way.
Which gives me an idea: In Israel there’s a tax on financial profits. I’m not opposed to this tax in principle – this money is made not with hard labor, but only with a bit of thought and a few mouse clicks and besides only the profits are taxed and the losses are compensated. What i want to offer is a to make this tax differential: There should be a lower tax for profiting on companies which have exceptional environmental record and a higher tax for companies who pollute or make weapons (more on that later). The Tel-Aviv Stock Exchange already started publishing an index of companies that are leading in providing good social and environmental example. If those companies give to charity, they essentially reduce government spending, so their investors should be compensated for that. And of course, it will attract more investors to the good type of companies and develop our green industries. As soon as a new taxes commission chairman will be appointed, i’ll send him this idea.