re:  When it comes to solar energy, U.S. is still in the dark

In his article about solar panel (and computer chip) producer Applied Materials, Thomas Friedman notes that none of the corporation's 14 panel factories are located in the United States, but rather are in Germany, China, Spain, India, Italy, Taiwan, and "even" Abu Dhabi.  He then reasons that this lack of domestic production is the result of a failure of the US government to provide the proper incentives and infrastructure.  He fails to mention, however, that government incentives and infrastructure (or, as he calls them, "prerequisites for growing a renewable energy industry") aren't free — they must be paid for by taxpayers.  So when he is ultimately decrying is the fact that US investors and consumers are not being forced by their government to pay for less efficient, more expensive solar energy and instead choose for themselves the best return for their investment capital and the best value for their electricity spending.

Mr. Friedman also misses another potential reason, however, for Applied Materials decision to build plants overseas rather than domestically.  Of the countries mentioned as current locations for solar panel factories, each one of them (even Communist China!) has a lower rate of taxation on either capital gains, corporate earnings, or both.  That is, Applied Materials gets to keep more of each dollar it earns on solar panels made elsewhere.

Instead of advocating government subsidies for chosen industries — i.e., special interests — a better approach would be for the US to make investing in domestic production facilities for all businesses more profitable by reducing taxes on investment and earnings.  Then perhaps all kinds of businesses would seek to invest here, not just those favored by politicians and editorialists.

Sincerely,
Dave Smith
Houston, TX