get paid to live in Vermont
October 7th, 2007
Politics, Vermont, economics, global warming, peak oil, taxes
Did this tag line get your attention? It suggests a pretty radical idea, but no more radical than suggesting the more we tax ourselves, the better we educate ourselves, the better the local economy. If you believe that, then this Sunday morning muse should blow your socks off.
Four (count that 4) nuclear energy plants; two on Lake Champlain and two on the Connecticut River. Vermont becomes the “nuke” state of New England. Vermont exports electrical energy to the rest of the region at market price; the profits of course are returned to the Vermonters as free electricity, free hydrogen (to power our hydrogen cars, one to a family also free), and no taxes; the vast excess of remaining profit will double our educational capacity (and we will need it!) All food too will be locally grown - no valuable agricultural lands devoted to “biofuels” (which have a carbon footprint).
What’s the catch? We all have to be part of the ‘corporation‘.
Four nukes generating more than 20,000 Mkw; at today’s retail price ($0.10 per km) is a gross revenue of $2B. Vermont’s GSP is $23B; government $3B so the project is not quite a wash at today’s retail electric prices.
But it is an odd’s on bet those prices won’t hold steady in the near future. With rising crude oil prices and the prospect of carbon caps and or carbon taxes… (not to mention “peak oil”) there is only one way prices can go.
So how does this work? Once the state wide referendum is passed by an overwhelming majority, all property and income taxes drop to zero. We finance our nukes and state government spending with our triple AAA bonds; loans guaranteed. So with a future guaranteed supply of carbon free non fossil, non bio fuel energy- with surplus to cover repayment of bonds, state government services and education, what do you think happens to Vermont real estate prices?
Afraid of glowing in the dark? (As opposed to being suffocated by carbon dioxide?) Sell your property - for a sizable profit - and move to Chile! And jobs? With a secure source of energy and local agriculture with which to feed the population, Vermont can pick and choose those companies that will beg to relocate here.
The caveat? Bernie Sanders gets to be President and Chairman of the Vermont Nuclear Regulatory Commission.
While this post was written purely for entertainment (mostly mine), the idea has legs (thin) - except of course most Vermonters are terrified of nuclear energy - where I point out France is doing just fine. But seriously, think about it? There are some very interesting creative financing opportunities here. For example, subordinate the bonds against real estate values. Each property owner pledges 10% of the future value against the state’s bond obligations. And in return, property taxes go to zero. With zero property and income taxes, equity values are significantly leveraged so I can’t imagine any property owner today turning down that deal, especially in light of current market conditions!
Call me crazy.
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