Nations rise when pioneering entrepreneurs emerge. Without those pioneers, the capacity to combine factors of production to redesign economic structures and fix market frictions stall. As America begins to debate the SPACE Tax Act structured to make sure billionaires and millionaires who sojourn to space pay taxes for the experiences, it becomes evident that America has created another sector.
Before the American steel industry, Carnegie had to emerge. Before the US energy sector, Rockefeller existed. From JP Morgan to BY Mellon, men were ahead of the government in setting the ordinance of US banking. And in this era, Jeff Bezos, Elon Musk and Richard Branson are unlocking the broad space tourism.
Space tourism, which in recent months has witnessed a frenzy as billionaire-enthusiasts take turns to fly miles above the earth’s surface, has unveiled a multi-billion dollar economy. From SpaceX to Blue Origin to Virgin Galactic, the space transport companies have seen burgeoning demands for their high cost seats by wannabe astronauts in what has been described as “billionaires’ luxury trips.”
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But as budding space tourism takes shape, and more people show interest in experiencing the full force of gravity through orbital and suborbital space flights, the United States Congress is seeing an opportunity to make more revenue for the government.
U.S. Rep. Earl Blumenauer (D-Oregon) plans to introduce legislation called the Securing Protections Against Carbon Emissions (SPACE) Tax Act, which would impose new excise taxes on space tourism trips. The exercise is targeted on commercial space flights carrying human passengers for purposes other than scientific research.
There is a lesson here: Nigeria cannot have it the other way around: the government has never led anything and we cannot expect everything to be anchored by bureaucrats.
Like Nollywood, Nigeria’s movie industry, which emerged without any memo to the government, our pioneering innovators must do the same in other sectors. Sure, when you do it, they will come with a tax bill. And that is the beauty of it. By 2040, space tourism is projected to be a $1.1 trillion business. Yes, more tax revenue for America!
Africa needs PIONEERING entrepreneurs – they are the high priests to shared prosperity and future abundance in nations. The redesign economies and unlock latent opportunities, driving optimist exuberance for national political leaders because they expand economies and tax dollars.
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