Tax rewards

Thus by now it s almost an automatic reflex for government policymakers to think about stimulating innovation by dangling the reward of tax credits or fast depreciation writeoffs. The rewards, of course, would be narrowly "targeted" to cover added R D investments. Targeting is a key concept of government officials who are trying to manipulate behavior, because without it, a tax reward would become a "windfall" for everyone, innovative or not. 

If an innovation tax reward was on the books, probably a majority of companies would see their interests coincide with those of the government, and would dutifully build new labs and buy new research equipment. Perhaps some others would be tempted to veer a bit off target and sink the innovation reward, or its bookkeeping equivalent, into a new employee cafeteria or a fleet of trucks. And, unfortunately, a few businessmen doubtless would try to figure out ways to just... 

It is a truism that people have more liberty in proportion as more aspects of their lives are private. The American people invited the state to take over the management of their health, and are now surprised that they have less control not only over the health care they receive but also over other aspects of their lives. Nor is that the end of the mischief The more tax monies are spent on health care, the more firmly entrenched becomes the idea in nearly everyone s mind that caring for people s health requires not individual self-control, but political control, that is, control by deception, seduction, and coercion. The state commands vast resources of misinformation (propaganda) and seduction (money and other economic rewards) and has a monopoly of force (the law). 

The conclusion is that it is not necessary to provide specific tax favors for hydrogen. A uniform fuel tax at a level like 615/GJ rewards the more efficient technologies. It materializes in a fuel cost advantage for the more efficient hydrogen and fuel cell concept. 

Turning to tcoc credits, it is evident that they would reward firms, for doing R and D that they would have done anyway, that they would not help firms with no profits, and that they would encourage firms to define R and D as widely as possible. Some of these problems might be solved by a tax credit for increases in R ctnd D, but many problems remain. For exemiple, firms would still have an incentive to redefine R and D, euid for firms that can appropriate little of the social returns from new technologies, R and D would still be unprofitable even if the tax credit existed. 

The Federal government should establish policies which encourage innovation and risk-taking. The current excessive regulatory activity, hurdensome tax policies, and hi rate of inflation have increased the uncertainty about the future and reduced the potential rewards from innovation. 

Up to this point on the cost table (Table 6.1)—the works cost or total production cost—the cost build-up for the chemical allows only recovery of monies spent in producing the product and in maintaining the operation of the producing works and company. We now need to look at what profit will come from the sale of the product to provide for company growth, to reward shareholders and to pay taxes. 

Profit is often the key consideration in designing a chemical process. Process economics is the formalism for calculating the finances of making and selling a product. Process economics also applies to the finances of providing a service. The concept of process economics is straightforward. The accounting, however, can be complicated. However, with this complication comes the opportunity for creativity. The economist John Maynard Keynes (1883-1946) remarked, The avoidance of taxes is the only intellectual pursuit that still carries any reward. ... 

Monetary bonuses or rewards are generally taxable. Employers can either take the taxes out of worker s checks, or the employer can gross up the amount of the award to cover the cost of the taxes. This could be a significant amount, depending on the amount of the collective awards. Even things that are not immediately thought of as cash incentives are taxable, such as gift certificates that convert to cash if the entire amount is not used. It is advisable to consult with a tax professional on these types of issues. 

Beware of the IRS Incentive programs are likely considered taxable—particularly if you are dealing with monetary rewards, high-value personal property, or awards to a large percentage of employees. Consult with your payroll staff or tax professional. Also, consider reviewing the IRS publications 15-A, 15-B and Pubhcation 525 (www. irs.gov). 

The war was very costly to Chile, but the conquest was highly rewarding because the country seized control of all nitrate deposits customs taxes on exports of Tara-paca and Antofagasta nitrates became the largest source of revenue for the Chilean government. As Hancock concluded a decade later, it was a desert worth fighting for it was yielding 10,000,000 a year. ... 

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