I just read that Germany is way ahead in developing green technology. (Knowledge@Wharton -- http://knowledge.wharton.upenn.edu/article.cfm?articleid=2201)
I assume that some of Germany's success comes from the fact that energy is more expensive in Europe than in the U.S. and that their government and industries are more in favor of green initiatives than ours. But I also wonder if they are more innovative because they don't tax capital gains. Think of how much more incentive industry, entrepreneurs and venture capitalists would have to invest in new technologies, if the capital gains they reaped were not taxed.
Maybe the Democrats have it all wrong. Maybe the way to get our country going again is to eliminate the capital gains tax and to give tax credits to green energy initiatives. (At the same time, we should slap payroll taxes on all earnings -- all those millions given to AIG and investment banking leaders. That could save social security and Medicare. Then, remove the payroll tax on people earning under $25,000 to put more money into the pockets of the working poor.)
We should be looking more at tax incentives and making green energy investments worthwhile.
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