Review of ‘Impact of Proposed Energy Tax Plan for Florida'
Tax subsidies for the renewable energy industry will punish the Florida economy and kill jobs throughout the state. The article concludes that Urbanchuk's analysis "fails to account for losses that occur from providing these targeted tax breaks." The losses arise because these incentives induce the overproduction of less efficient energy sources. Furthermore, the these targeted tax breaks make for a less productive investment environment. The analysis fails to account for the opportunity cost of investment that was divertedto less efficient industries from more efficient ones.