The Solar Powered Machine that Devoured Inequality and Funded Universal Dividend Income
If we are going to produce a universal dividend income, we need to source it from a limitless resource. Fortunately, we don’t have to invent the sun. The rest is comparatively easy.
Beta test of the universal dividend income prototype:
1. Monetize the clean energy tax credit.
2. Buy shares in dividend paying publicly traded companies.
3. Convey the shares to working families.
A tax incentive contributes to business earnings. The tax incentive is a loss in tax revenue to the community. Using the monetized tax credit to invest in dividend producing assets which are conveyed to members of the community issuing the tax credit, is an offset to that cost.
Here’s how we know if the offset is adequate:
Investment of the monetized tax credit generates tax revenue.
If investment of the monetized tax generates tax revenue equal to or in excess of the loss in tax revenue, then the offset is adequate.
Investment in an equity REIT, investment in a YieldCo, which funds projects such as housing and energy development generate tax revenue in excess of the tax credit.
The benefit to the community can be structured such that the tax credit is self-funding.
This is the beta test.
As we further monetize tax incentives, the benefit to the geographic population that issued the tax credit becomes more significant.