George Rebane

The most recent $30B stimulus bill in Congress just had its only beneficial organ removed by the Democrats.  President Obama’s draft of the bill included a permanent corporate tax credit for R&D expenses.  This was a recognition of America’s historical lead in technology development and technology supported workplace productivity, and during the recession it might be beneficial if the private sector received a tax break on investments into technologies that might even include green stuff.

Wiser socialist heads in Congress immediately recognized the danger in letting such a cash and control lever out of their hands.  Who knows what all kinds of good stuff might now come out of private industry that is not beholden to Washington politicians and bureaucrats.  Why they might even commit the most horrible act of discovery ever – the development of sustainable energy production or savings methodologies that are actually profitable.  At a minimum, those sneaky capitalist bastards will come out with more gizmos that increase productivity.  And then fewer of our loyal voters will be needed in an economy to which we have already tied a few permanent anchors (aka ‘structural friction’).  No, no, no!

Such a tax credit would then mean no more ability to target favored industries working on favored boondoggles to sell product into mandated markets, and guarantee favored riskless profits from which grateful campaign contributions would flow back to you know who.  By pulling back this obvious benefit to the nation, progressives have again revealed their baseline motivations – command and control, and above all, re-election.

As cynical as I am about all things collective and subsidized – especially in the government/industrial complex – I would not be surprised if some of that much-hyped green California venture capital participated in bringing this little item to the attention of the congressional dufus division.  ‘Hey, Harry and Nancy, if you let this provision survive in the new ‘Jobs Bill’, then how will you be able to guarantee the profitability of our green investments when who knows who all will be competing?’