Friday, August 6

Wind energy tax credits, the circle of taxation

American Wind Energy Association (AWEA) in The Hill:

“[T]he PTC doesn’t cost taxpayers anything in actuality — because the local, state, and federal taxes paid by the expanded industry more than add up to the tax relief provided up-front to incentivize all that private investment. Without the PTC, the industry wouldn’t be nearly as big and thus wouldn’t pay those taxes, so there is no opportunity cost,” AWEA said, citing the NextEra analysis. (E2 Wire)

If what AWEA says is true, then federal taxpayers pay higher taxes only to have that money channeled for the benefit of local and state governments, and we have more expensive electricity, too. This isn’t a good deal.

Whenever someone claims that paying more taxes is a benefit, watch out. It’s not necessarily a good thing to take more from the productive private sector to give to government.