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Which is especially amusing given his or her other thread complaining about housing costs rising too fast.
After reading his thread and post history a little bit this morning it seems to be they are just crying for crying sake about alot of things. It's almost like PermaBear (if you could remember him) crying about real estate in San Francisco but living with his parents hoping for another recession that cause massive unemployment and throw everyone out on the street just to buy a house in a down market.
So, now that I know this will not participate in these threads that he has started.
What you're proposing is nice in principle but all it would do is cause US inflation to skyrocket. That would greatly affect the costs of goods and services including the price of housing. So it would not do as much good as you think unfortunately.
Simple cause and effect.
Like i said, without raising the cost of goods, ( thus inflating the price) then in theory should work. No reason to inflate something just because their is enough funds going around.
After reading his thread and post history a little bit this morning it seems to be they are just crying for crying sake about alot of things. It's almost like PermaBear (if you could remember him) crying about real estate in San Francisco but living with his parents hoping for another recession that cause massive unemployment and throw everyone out on the street just to buy a house in a down market.
So, now that I know this will not participate in these threads that he has started.
Wow another "lets click on his name and see all the "whinny" posts this poster made" approach. How about add some input about the topic instead of trying to insult somebody base on past posts.
Wow another "lets click on his name and see all the "whinny" posts this poster made" approach.
Way back in another lifetime there was a phrase that made the rounds on Usenet and Listservs:
"we will be known by the sum of our posts" relating to the S:N ratio of frequent posters.
Everyone's entitled to the off-day or to mis-read/interpret something
and then to go off on a tear to who knows where (done it a time or two myself, right?)
but after some number there will be enough raw material to do a fair analysis.
This discussion is nothing but sour grapes, repeating the same old propaganda about greedy corporations that was being spouted back in the 1960s and 70s. An entire generation programmed to believe (erroneously) in Marxism.
This story gets old. Look, if you love redistributionism, move to Venezuela where this ideology is in its end game. Let the rest of us enjoy the fruits of our labor.
You got that right. It’s far too early to tell exactly what effect the tax cut will have. Plus lower the corporate tax rate is not only about hoping they reinvest but also making the American market more appealing to foreign corporations.
Any statutory burden of a tax on corporations is allocated as follows:
X% is borne by customers in the form of prices higher than they otherwise would be
Y% is borne by employees in the form of total compensation (and hours worked) lower than they otherwise would be
Z% is borne by business owners (shareholders) in the form of profits lower than they otherwise would be
...where X+Y+Z=1.0 (that is, X%+Y%+Z%=100.0%)
There is no windfall when a tax is reduced. 100% of a tax reduction flows to actual people: customers, employees, and business owners.
Quote:
Originally Posted by Anywhere but here
That is theory, not reality. The reality in that is that business owners do much better, otherwise its a pointless exercise. Granted some measly crumbs may be distributed to the flock to keep them calm and dumb.
I think what you're asserting is that in my equation above, Z is very close to 1 while X and Y are both small ("measly crumbs"). In that case X+Y+Z still equals 100%, right?
It would be a very unusual market segment or industry where all or nearly all of the benefit flows to only one of X, Y, or Z.
Note that the major owners in those industries -- that is, the largest shareholders by volume of shares owned -- tend to be public sector defined benefit pension plans and defined contribution pension plans, private sector defined benefit pension plans and defined pension plans, and various other forms of retirement plan holdings.
So in your hypothetical where Z captures all or almost all of the benefit of a business income tax decrease, those benefits are helping current and future retirees.
""There is still a lot of thinking on the right that if big corporations are happy, they're going to take the money they're saving and reinvest it in American workers," Rubio, R-Fla., told The Economist in a story release Monday. "In fact they bought back shares, a few gave out bonuses; there's no evidence whatsoever that the money's been massively poured back into the American worker."
Have to agree with that statement.
Sounds like someone who's gearing up for the 2020 primaries. Whether Democrat or Republican remains to be seen.
From what I have seen the investment is in technology
I think in 2008 business saw the chance to dump a lot of dead wood
Including affirmative action hires
Wish people would stop trotting out that old canard about US corporate taxes being "highest in the world...."
Yes, they were on paper, but just as when personal income tax rates were near 90% post WWII few if anyone actually paid that amount.
Thanks to a vast and bewildering array of credits, deductions and other methods companies were largely able to shave things down well below 35%. Heck many ended up getting refunds that often stretched one, two or more years carried forward.
OK, let me give you a specific example. Let's take building and operating a semiconductor fabrication factory ("Fab") designed to manufacture modern microprocessors such as the one inside your computer or tablet or smartphone you're using to read this post. The modern microprocessor has about 18 Billion transistors manufactured onto a slice of strained silicon about the size of your thumbnail, and is arguably the most complex thing ever invented or manufactured by mankind. That it can be manufactured & works at all is only this far >< away from magic.
A Microprocessor Fab is filled with very good paying jobs and highly skilled employees - they typically have PhDs in EE, ME, ChemE, IE, Materials Science, Photolithography and the like. The payroll costs are high.
Even so, the cost of labor is in the noise - it isn't even a rounding error. The capital costs of building a Microprocessor Fab are immense - you start with a clean slate (you rarely refurbish an existing Fab once it is up and running) which means raw dirt. You invest north of $6 Billion to build the Fab just as fast as you can over several years and you have your fingers crossed that there will be a market for the little microprocessors you plan to build several years down the line.
An analysis of the total costs over 10 years to build and operate the Fab -- capital, toolset, materials, supplies, labor, etc etc etc etc shows that it costs an extra $1 Billion to build and operate the Fab in the USA compared to overseas. Almost all of that extra $1 Billion is because of US income taxes. Most of the rest is because of US environmental regulations.
Labor costs more in the USA but even so total labor costs are in the noise.
Raw materials cost essentially the same around the world.
Semiconductor manufacturing equipment ("toolset") costs the same around the world.
Fabs consume a lot of electricity and water, and while those rates differ around the world, they too are not a major factor.
The difference is Taxes. It costs an extra $1 Billion to build and operate a Fab in the USA almost completely because of US taxes.
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