Links: President Obama’s Climate Change Plan, Green Energy Tax Credits, and the Cost of Tax Hikes
June 25, 2013
President Obama unveiled his new climate change plan today in a speech at Georgetown. Hopefully the plan strays away from using of the tax code as a means to bring about change. Something tells me it won’t.
South Dakota hopes that its new tax incentives will help its wind energy production. But it appears that green tax incentives actually do little reduce carbon emissions and more often result in handouts for green energy companies.
Speaking of corporate tax breaks, CNN money has a graph of the top states for corporate tax breaks. Michigan leads the charge at $11.4 billion.
Political Calculations puts the multiplier effect of a tax increase at -300 percent and a government spending cut at 60 percent. This means every $1 in tax increases lowers future GDP by $3 where a $1 in spending cuts only damages future GDP by $0.60.
A LIFT Coalition op-ed points out how the recent Ways and Means hearing on profit shifting sheds light on the way America’s worldwide tax system makes it “harder for American companies to invest back home and hurts our economy, particularly in terms of job creation, research and development, and plant expansions.” You can read more on that here and here.
And in international news, Europe has decided to put a hold on its financial transaction tax…for the time being.