How a 70% Clean Energy Tax Credit Produces Net Positive Tax Revenue, Accelerates Our Transition to Clean Energy, Stimulates GDP and Job Creation
The tax credit would be generate net positive tax revenue. It is possible to design a 70% tax credit which is self-funding.
What would a 70% tax credit mean regarding economic growth?
Growth rates functionalized by an expanded, well paid work force?
For every $1 per hr increase in wages, workforce participation increases by some number.
With each additional worker, GNP increases correspondingly.
Additionally, GNP gets a boost from lower energy costs.
What does a 70% tax credit mean regarding jobs?
The world needs to transition from an unsustainable source of energy to a sustainable source. That’s a lot of work to do.
In an upcoming post, modeling of a tax credit at the level of 70% of project value will be illustrated.
A tax credit in excess of 70% is sustainable if funds above the 70% tax credit level are applied to the development of skills required for advanced manufacturing jobs.
Modeling the algorithm to fine tune the design of the tax credit:
Applying $.50 of every tax credit dollar above 80% to job skill development would allow for sustainability of a tax credit of up to ‘x’ %.
Modeling will determine the value of ‘x’. Maybe its 85%. Maybe 90%.
Applying $.75 of every tax credit dollar above 80% allows for sustainability of a tax credit of up to ‘y’ %.
The level of tax credit sustainability is a function of the pay rate. The better paying the job, the higher the sustainability level of the tax credit.
And so the evolution of economics brings forth the new modern era.
What does an 80% tax credit mean regarding the rate at which we transition to clean energy?