The economy and environment are two important aspects that may endanger or secure a particular country. While it is necessary that these two components are promoted and supported, it is likely that each inevitably affects the other. Tax subsidies and the development of alternative energy sources are two specific issues concerning the economic and environment systems, respectively, of the United States. It is undeniable that earnest efforts done by previous administrations in order to address, if not resolve the said problems were notably insufficient.
Such conditions therefore require the President to influence Congress to pass tax subsidy measures for the advancement of optional and renewable energies. An analysis shows that tax incentives, that are adhering and upholding the principles of alternative energy resources, result to beneficial implications. Citing the report made by the Tax Policy Center (2009), it can be stated that current tax incentives indeed lessen the country’s utilization of oil products.
In turn, the situation resulted into an impending slowing down of global warming, decreased reliance on fossil fuels and encouraged the improvement of fresh technologies that are able to continue in the future (Tax Policy Center, 2009). Since the price and accessibility of oil products definitely affect an impending Executive decision, it is worthy to deliberate the viability of alternative energy sources considering the fluctuating situation within the oil industry which even signifies a worldwide oil crisis.
Based from the said evaluation, it is practical to relate it with the components of supply and demand. Ultimately, the significant function of creating and passing legislation that provides tax incentives for the advancement of non-fossil fuel sources are essential components of this further analysis and recommendation which the President is hoped to eventually approve.
The issue of whether or not the Executive Branch should exercise persuasive influence on Congress to pass legislations that would authorize tax subsidies for the development of alternative energy sources is the main premise of this analysis and recommendation. With the economic down turn experienced by the country being triggered by the collapse of major financial institutions, it is but imperative that at this early point in your administration the possibility of an energy crisis anytime soon should already be given priority attention.
This should be the case because the impact of an energy crisis will be far worse than the financial crisis that we are into today. Without doubt the sources of our oil product requirements, both domestically produced and imported from oil exporting countries, continue to be depleted each passing day. A fuel shortage is likely to happen in the next few decades as traditional sources from the Middle East and European nations can be expected to reduce or cut down on production in order to have sufficient reserves for their own future consumptions.
With escalating requirement for alternative energy sources but reduced production by the oil producing countries, pump prices of oil products will certainly zoom to unimaginable levels. Such is a typical and the expected manifestation of economy’s law of supply and demand. This will become serious each year because the demand will continue to rise as a result of steady increase in population and need to generate more basic needs or products to sustain life itself. With this prospect fast becoming a stark reality, our government is left with only few options.
In fact, even the feasibility of optional energy resources is raised. In effect, this makes it more difficult for the non-fossil fuel industry to attain stability. It is essential that financial assistance, through tax incentive initiative, is offered by the government and Congress in order to provide the market with dependable and affordable alternate for oil products. One of these choices is for the United States to identify and rapidly develop alternatives energy sources, particularly non-fossil fuel sources.
And since the federal government is deep into responding to and solving the ill-effects of the present economic meltdown, the task of identifying and developing alternate energy sources clearly falls on the laps of the private sector. In order to encourage private individuals and corporations to invest in the development of alternative energy sources, Congress must come up with attractive tax subsidies and investment promotions packages.
It is strongly recommend that the following legislative measures should be immediately pushed: 1. An act granting 100 percent tax exemption on imports of machineries and materials needed for research and development of alternative energy sources. 2. An act providing ten (10) years tax holiday for persons and corporations engaged in the development and production of alternative energy sources and products, both domestic-based and overseas operations and activities of American citizens and corporations. 3.
An act establishing a $100 Billion Fund to support private researches and production of alternate energy sources and products to be administered by the Energy Department. 4. An Act granting 50 percent income tax exemption to American car manufacturers engaged in the development and production of non-oil dependent vehicles. Aside from the proposed new tax incentives, it is also highly recommended that the existing measures supporting energy preservation and renewable energy resources be extended and adjusted by Congress.
Such undertaking, coupled with new tax incentive legislations, are sure to resolve the said economic and environment concerns of the country. In view of the above, it is recommended that there is a need for the President to push Congress to approve tax subsidy laws for the ultimate support and development of alternative energy sources.
Tax Policy Center. (2009). Reinvestment in Renewable Energy. Retrieved March 23, 2009, from http://www. taxpolicycenter. org/taxtopics/recoveryreport/renewable_energy. cfm