This LTE explains in very personal terms why tax simplification is required. A few paragraphs into the LTE, it says “But the tax reform proposal introduced by the U.S. House could undo much of that success. It breaks a bipartisan deal agreed to at the end of 2015 to phase down the wind energy Production Tax Credit by 2020. House lawmakers are looking to re-write the rules in the middle of the game, and that puts our economy and U.S. workers at risk.”

There’s no disputing that the new tax legislation will put some businesses at risk. Entrepreneurship requires taking risks. Why should a renewable energy business not face risk but farmers live with the prospect of getting wiped out every minute of their lives?

It’s time that the federal government got out of the corporate welfare business. If a product is a quality product and it’s essential to enough people, it will succeed. If it isn’t that essential, people might ignore it, in which case the company will soon be bankrupt. That’s capitalism and it’s the best economic model in the history of mankind. Here’s what Milton Friedman thinks of capitalism:

Congress developed the PTC to help wind developers gain access to the private investment capital they need to build wind farms. That in turn keeps U.S. factory workers busy making new wind turbines, and it keeps construction businesses like ours stay busy installing them. Our workers depend on these orders, and the PTC has helped keep our construction queue full.

What this company is apparently lobbying for is lower corporate tax rates and corporate welfare, too. Taxpayers shouldn’t shoulder the burden on whether a company succeeds or fails.

This is crony capitalism at its worst. For the foreseeable future, companies will introduce studies that highlight the benefits of corporate welfare:

That’s why American wind power added jobs nine times faster than overall economy last year, and keeping the investment policies stable will create an additional $85 billion in economic activity through 2020, according to Navigant Consulting. It will also grow an additional 50,000 American jobs, including more 8,000 jobs at U.S. factories, by the end of President Trump’s first term.

With all due respect, we don’t know that. I’m certainly not willing to trust a self-serving report. Companies that commission these types of reports frequently can’t survive without corporate welfare.

It’s time to cut this cord.

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