8 ms·

Mean reversion? 5% is very unusual.

• neximo64 10y ago
  You don't pay taxes on the mean. They are unusual because they were minimized.
  • kbutler 10y ago
    "Reversion to the mean" is the process where later data is more typical than an outlying datum, so aberrations caused by outliers are averaged out, giving a result progressively closer to the mean of the data as subsequent data is added.
    • neximo64 10y ago
      In short, that the rate over a decade instead of over a year is the official corporate tax rate. For Google it doesn't work out this way, still.
      • hiddencost 10y ago
        You really should Google the phrase "reversion to the mean", because you clearly have no idea what is going on but remain confident.
        • neximo64 10y ago
          Googles mean or even max is far from 35% over their entire history. I fail to see the relevance of your argument. Perhaps you think Google will eventually in the future pay 35% and everything in the past was just an anomaly? Because it's a laughable thought, or if you're absolutely convinced that is the case you're incredibly naive. You're mixing up mean reversion with extrapolation.
          • btian 10y ago
            Where did you get the 35% number from? You know Google is a global company, right? Corporate income tax rate in Ireland is 12.5%. Have you seen any global company paying 35% income tax?
            • neximo64 10y ago
              Does that mean that its profits would be volume weighted based on where they're earned? Because they still do not match up, 12.5% would be the lower boundary - of which Google was below on many years. What you've come up with is a rationalisation. There is no way you can spin it, there is clear avoidance & the excuse is a battle on details of the law.