Virtuous Cycle and Negating the External Diseconomy of Tax Credits, Tax Breaks, & Tax Loop Holes
Here’s the problem.
We create a business benefit when we issue tax credits, tax breaks, and tax loopholes. The population in the jurisdiction that issued the credit has a cost. That external diseconomy can be internalized in a way that creates offsetting benefits for the specific business.
We’ve seen how the tax credits create a virtuous cycle out of a tax credit. Its a virtuous cycle that makes the rich royally rich. We’ve created virtuous cycles that have spun wealth ownership out of control. What we will see is how we can internalize the external diseconomy, the tax credit can be used to create a virtuous cycle for the middle class. Sifts the cost to the business. But we can can create offsetting economic benefits.
SolarMethod delineates the methodology.