10 Ways Your Taxes Pay For Environmental Devastation

Urban sprawl, pollution, over-consumption, deforestation…like it or not, U.S. taxpayers are still paying for all of these things to occur in America and beyond. Despite recent investments in green jobs and technology, an array of government subsidies pay big dirty industries like oil, coal and factory farms to destroy the environment in every way possible while greener, healthier industries like solar power and vegetable farms get a pittance.

10. Highways

When gas prices rose dramatically in 2008, Americans began flocking to mass transit in droves, resulting in declining revenues for the Federal Highway Trust Fund. Naturally, the Bush Administration’s response was to take money from already underfunded mass transit and use it to pay for highways that are already, as Slate put it, “paved with gold”. Billions of dollars are pumped into the highway system every year, which encourages the polluting car culture and leads to further sprawl, while mass transit continues to fall by the wayside.

9. SUVs

In case you aren’t already taking optimal advantage of the polluting power of our nation’s sprawling web of highways, the government would like to make your impact even greater by setting you up in a nice gas-guzzling subsidized SUV. A portion of the tax code revised in 2003 gives business owners a huge deduction for up to 30% of a large vehicle’s cost, which can add up to $25,000 in the case of a Hummer – far more than the credit given to individual purchasers of energy-efficient vehicles. Attempts to axe this provision in 2007 failed.

You only get the credit if it seats more than 9 passengers or weighs more than 14,000 pounds, but they don’t really care whether your business actually requires such a vehicle. So, by all means, get the Escalade.

8. Paper Mills

Paper mills cut down trees while sucking up massive amounts of fossil fuels and get big money from the government to do it – all through a loophole in a law that was supposed to benefit renewable energy. A law enacted in 2005 contains a section that gives businesses an incentive to mix alternative energy sources with fossil fuels. To qualify for the tax credit, paper companies started adding diesel fuel to “black liquor”, a pulp-making byproduct that they were already using to generate electricity on its own.

But time might be running out for this egregious misuse of taxpayer money: the unemployment extension bill approved by the Senate and on its way to the House would eliminate this loophole and use the funds for health care. (Editor’s note: We’ve contacted both the editor and writer of this story at BusinessWeek to confirm that this loophole will still be closed in the bill just passed by the Senate, and will update if more information becomes available. In the meantime, there’s this resource which seems to confirm the loophole is in fact being closed.)

7. Commercial Fishing

About half of the $713 million in subsidies given to the U.S. fishing industry directly contributes to overfishing, according to a new study by the Environmental Working Group. The subsidies – which equal about a fifth of the value of the catch itself – lower overhead costs and promote increased fishing capacity, meaning more fish are caught than can be naturally replaced.

Overfishing is a huge environmental problem – up to 25% of the world’s fishery stocks are overexploited or depleted, according to the UN’s Food and Agriculture Organization.  But that’s not the only result of the subsidies; because roughly half of the money goes toward fuel costs, other consequences include wasteful fuel consumption as well as air and water pollution.

6. Nuclear Power