the present economic crisis and global warming crisis can be solved very quickly
the situation so far.......
has meant that banks and financial institutions have become over extended, massive bail outs, mortgage defaults, rising unemployment and a fall in consumers.
since the boom of the mid nineties in australia (i can't vouch for the rest of the world) the government has been increasing its taxes in line of the available credit created by the boom. the government understood that more money in the system meant they could tax more. now the economy has taken a downturn the government has kept many of its boom times taxes and can't understand why despite massive handouts they still can't kick start the economy.
another looming problem is of course global warming, the economic downturn may well mean less oil is being used but either way coal and oil are still being burnt in great quantities keeping carbon dioxide up and increasing.
the solution....
the next budget can address many of the present problems and solve them quickly by changing the tax system in favour of renewables, in fact renewables ARE the way forward out of this mess of the last few centuries.
at tax time all presnt tax deductions used by the population to massively offset their income tax is reduced. the loopholes used by the rich to offset their taxes are tightened and made unviable. however.... despite all this tax doom and gloom a new corridor of tax offsets will appear and will make tax deductions on income tax a breeze for rich and poor.
approved renewable energy products and energy efficient products will now become fully tax deductible.
lets say you had a roughly middle class family on say 150,000 - 400,000 a year. by purchasing a photovolatic system of some 50,000 dollars they would be eligible to receive a tax deduction of 50,000 off their income no questions asked (apart from proof by the installer and someone from the government to make sure its been installed - visit again to make sure it stays there.)
lets say you had a working class family on much lower wages. if they purchase a solar hot water system of say 4-6000 dollars then 4/6000 dollars would come straight off their income tax.
this works in many ways for the new owner of these new forward thinking products
1 the owner gets an immediate tax deduction
2 the energy being produced by a photovolataic system means the owner starts making money by selling the power (after all power is becoming more expensive and you get a good rate for Kwhs of renewable energy). the owners electricity bill collapses and any money that he might "lose" by having to purchase his tax deduction is made up by the money he makes in return from his solar system. the poor by purchasing a solar hot water sytem (or heat pump system) will save money on their electricity bill immediately in the first quarter on top of their tax deduction.
3 as people purchase renewable systems the demand for installers and training for these industries increases which means jobs , jobs , jobs. instead of giving peoiple handouts we give them good jobs that require ongoing training and education which means a boost in moral amongst the population.
4 purchases and consumerism the driving force of economies increases but leads to a better life for all. we "spend" our way out of a recession by directing tax cuts that promote well being through consumerism. the air becomes cleaner as hybrid cars and cars with demonstrated economy become fully tax deductible. rich people rush out to buy hybrids such as the camry hybrid supposedly being made in australia in the near future.
so there we have it.
the rich and poor rush out to buy renewable systems or energy efficient products and so drive a purchasing boom. it doesn't cause much inflation because the money being used is already in existence.
it does create jobs, tax dollars thrown into money pits that create no new jobs is now freed up to create new jobs and many of them. the rish have new source of earnings (which is seen as tax free, the power being generated should not be liable to tax until at least 5 years after installation, if at all).
the poor have rewarding jobs not handouts that lead to a massive malaise in society not to mention crime. they have cheap hot water and have had a good income tax cut on the back of this cheap hot water. renewable systems such as solar pv systems become attractive to many more people looking to offset their income tax rich or poor.
a purchasing boom occurs that allows the economy to climb out of a hole as people now have secure jobs for at least a decade as the world heads down the next industrial revolution.
because renewable syetsm always need replacing the renwable boom can be designed to come in everytime an economic boom collapses (people are usually greedy and get themselves into silly positions). in this collapse comes a stimulus package that helps them live better lives. renewable purchases would be like a rapid rise and slow decline until the next collapse. labour for the renewable revolution becomes available every collapse.
buying solar panels will be better than buying shares because they are guranteed a return rather than a gamble on market forces. the return will decrease as each year goes by as the cell wears out but you will get a return guaranteed. perhaps shares in buolding solar thermal plants could be fully tax deductible, that is by buying 50,000 dollars of solar thermal plant shares you build a new powerstation and pay less tax. in effect you haven't changed the sytem much, just steered it into a different direction?
