Over the last several weeks, I have watched conservatives snicker at T. Boone Pickens' plan for energy independence. They have called it such things as boondoggle. The one big difference between T. Boone Pickens and his critics is that of Pickens. He's already invested over $2 billion in wind farms and he will likely invest many billions more. Unlike Pickens' critics, he puts his money where his mouth is.
In my opinion, the best way to successful energy independence and domestic energy production is to reward entrepeneurs like Pickens as much as possible. I don't know much about wind power or frankly any other alternative energy source. Whether it is wind, solar, hydrogen, ethanol, natural gas, or even domestically produced oil, any energy that isn't outsourced is one we should all try and support. I know that the more folks like Pickens that invest in alternative energy sources, the faster our country will become truly energy independent. In other words, we need to motivate as many T. Boone Pickens to follow him and make the necessary investment into alternative energy sources and domestic energy as possible.
T. Boone Pickens is the practical applilcation of my theoretical plan toward energy independence. Ironically enough, there is little more incentive any could offer to Pickens himself to make any more of a commitment to alternative energy. Not only does he genuinely and firmly believe in the power of wind energy, but he sees energy independence as a matter of national security.
Still, there are plenty of entrepeneurs that need more encouragement than merely a heartfelt belief and a sense of duty. In my opinion, the best motivation is through taxes, or better yet the lack thereof.
In Pickens' case, he just invested $2 billion in new wind turbines. Now imagine if five years from now, those turbines turn a profit. Imagine if Pickens paid absolutely no taxes on that profit. Imagine instead, if Pickens invested in a company that already had wind turbines. Imagine if he could sell that company for a billion dollars more than he invested in it. Imagine if Pickens paid no capital gains tax on the sale.
The best way to encourage entrepeneurs to invest in alternative energy sources as well as other domestic energy is to reward their investment with tax rates that they wouldn't get in any other industry. If alternative energy and other domestic energy products had a ten year moratorium on all income, capital gains, and dividends tax, it would create the sort of investment necessary to make the United States truly energy independent. Rather than criticizing entrepeneurs like T. Boone Pickens we should be encouraging them to invest as much as possible in all things that make us independent from foreign oil. The best way to do that is to reward their investment with income and capital gains that face absolutely no taxes.
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2 comments:
Unfortunately, the Taxpayer is expected to pick up the bill and eminent domain might be the way in which Pickens will develop his "plan"
http://preview.tinyurl.com/6j6mwy see that to start.
It is a power play which is being promoted through Nancy Pelosi's willing participation and the reward for her could be great for helping to keep the oil prices as high as possible.
Pickens is a Businessman FIRST and foremost. Profit is what drives him, and he is successfully creating a movement with his barrage of commercials on radio and TV. If I spent as much in those areas as he has, I could probably convince everyone that pouring coffee in your tank will wake up your engine.
I must disagree with you on this matter entirely. While I cannot fault T. Boone in his efforts to create a new financial windfall, I DO have a problem with the Speaker holding up energy legislation to advance the proposition in California which appears to benefit her tremendously.
I don't know what the tax payer is supposed to do, however I do know that Pickens dropped $2 billion of his own money in the idea.
It sounds like the tax payer is taking a back seat to him.
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