If We Were Serious, We’d Have an 80% Investment Tax Credit …
And the Effect on the Economy Would be Dramatically Beneficial.
But what kind of havoc would an 80% tax credit have on government tax flows?
If we utilize a methodology in which working families benefit form the tax credit then the result is net positive tax revenue. Putting the tax benefit to work creating supplemental income for working families, the precursor to a universal dividend income, generates net positive tax revenue. Money in the hands of working families is M1. The velocity of M1 is 5.67. Putting those same funds into the hands of someone who holds the funds in a brokerage account, is M2. Velocity is 2.2. So, not net positive tax revenue.
This is what SolarMethod does.