Unexpected Solar Tax

Cassandra Sweet of the Wall Street Journal reported that companies that have contracted to buy solar panels with Chinese-made solar cells must now pay a retroactive solar tax. This will drive the price for solar panels up because the tax ranges from 31% to 250%.

This tax was imposed because American solar cell manufacturers complained to the federal government about China selling their solar cells below market prices. China could do this because their government subsidies the industry. Yet there was an advantage for American consumers because it drove down solar panel prices and resulted in a market oversupply.

Unfortunately, the decision of the Obama Administration to impose this solar tax does not combat or weaken the hold of Chinese-made solar cells on the American market because American businesses pay the tax. In addition, the Obama Administration made the tax retroactive so that businesses that already purchased solar panels with Chinese-made solar cells now face an unexpected tax burden.
Rather than a solution, the Obama Administration created a trade war with China which doesn’t hurt China, just American businesses and consumers. Its green energy policy will suffer a set back through the tax. Consumers always look for bargains. The new solar tax is another example of the faulty thinking of this administration.


About camden41

Retired public school administrator Retired history professor: Taught Western Civilization, American Civil War, United States History, Economic History, Ancient & Medieval Foundations, American History Since 1945
This entry was posted in Uncategorized and tagged , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s