Imagine: Billions in Existing Tax Credits Creating Universal Dividend Income
We can use the solar tax credit as a starting point for the creation of universal dividend income. Just as the visionary solar tax credit drove solar adoption, a decline in costs and accelerated solar adoption; we can use our imagination to achieve other social objectives.
Tax credits designed to generate net positive tax revenue can generate universal dividend income. The tax credits designed to create universal dividend income will be generate net positive tax revenue. Its a new way to think about your budget. Its a new way to run a government. Instead of the taxing authority taking money from you over there to give to someone else over here.
Billions of dollars in tax credits will be used to create billions of dollars in universal dividend income. Why do I say, ‘universal dividend income’? Dividend income comes from ownership of an asset that pays a dividend out of earnings to shareholders. The proceeds generated from the tax credit are used to purchase shares in dividend producing assets. Such as publicly traded companies. Money is not just spread around as a universal income.
A new model of capitalism unfolds. A model which is pretty cool. A model in which tax credits are issued to create businesses which achieve social objectives with the proceeds going to the geopopulation providing the tax benefit so that they may acquire company assets. Dividends produced from those companies go to the population served which can be used to acquire additional assets.
In the case of a re-engineered solar tax credit, net revenue from electricity production funds a universal dividend income. As power production and revenue generation is ongoing, accumulation of assets to fund a universal dividend income are continual. Funding for the acquisition of the assets generating economic activity by the geopopulation providing the tax credit reverse the trend of growing inequality by providing the capital base for each of us to pursue the opportunities which human potential afford.