definitionAfter a disaster, the government can raise funds for disaster rehabilitation with a tax. Like hedging instruments, a tax spreads the costs of the disaster response across the general public
(Kunreuther H. C. and Linnerooth-Bayer J., 1999, p. 14 ). Tax relief is intended to reduce the tax liability of an individual or business entity. Often, the tax relief is targeted at providing aid for a certain event or cause. For example, hurricane victims may be allotted some form of tax relief when a hard-hit area is declared a disaster area (Investopedia, Tax relief, accessed on Sept. 2016 ).
Co-benefits and impactsFinancial preparedness and recovery activities after flood events or other hazard phenomena in general.
Last modified: Sept. 21, 2016, 9:14 a.m.