Economics: Part 1: How Tax Incentives Create Inequality & Part 2: How to Use Tax Incentives to Devour Inequality and Create a Universal Income Dividiend

Tax incentives are an external diseconomy.

If you are unfamiliar with that terminology, allow me to offer a visual aid: Pollution coming out of a smoke stack is an external diseconomy.   Tax incentives enhance a business’ after tax earnings, but the tax incentives are a cost borne by the community.

Question: How do you know when the external diseconomy has been fully offset?

Answer: Recall that the tax incentive is the source of the diseconomy. When tax revenue from investing the monetized tax incentive offsets the cost in tax revenue of the tax incentive, then the external diseconomy has been offset.

Question: How does SolarMethod devour inequality?

Answer: By monetizing tax incentives and using those funds to buy shares in public companies and distributing those dividend paying shares to tax paying members of the population of the geographic region specific to the issuance of a tax incentive by the governing tax  authorities.

 

 

Leave a Comment

Your email address will not be published. Required fields are marked *