Tax Implications of producing 60 Billion Ethanol Gallons

Using information from the IMPLAN tax report and based on 2001 tax code, an estimated $45 billion in tax revenue is generated through indirect business taxes (27%), employee compensation (20%), corporate taxes (6%), household expenditure (41%), and proprietary income (6%) (Figure 21). Slightly over $30 billion is estimated to go to the federal government with Social Insurance taxes accounting for $9 billion and income tax $14.2 billion. On the state side, indirect business taxes on property is projected to increase by $4.1 billion in 2030 and sales tax could increase by $5.2 billion as a result of producing 60 billion gallons of ethanol. Appendix C includes a description of the taxes included in the IMPLAN analysis along with detailed tables for the 2030 solution.

Breaking the impacts apart into those generated by the renewable energy sector and those generated by the agricultural sector, a projected $43 billion will be generated from economic activity generated from the renewable energy sector and an estimated $2 billion from economic activity generated from the agricultural sector.

45,697 Million Dollars

Indirect

Employee

Compensation

Business Taxes

20%

27%

f

\ Proprietary

1_

Income

Enterprises

6%

(Corporations)

J

6% \

-__^

Household

Expenditures

41%

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Getting Started With Solar

Getting Started With Solar

Do we really want the one thing that gives us its resources unconditionally to suffer even more than it is suffering now? Nature, is a part of our being from the earliest human days. We respect Nature and it gives us its bounty, but in the recent past greedy money hungry corporations have made us all so destructive, so wasteful.

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