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That was a lot of extra words around the crucial bit: > It is based on incentivizing behavior through tax breaks/credits. Who do you think has time and money

That was a lot of extra words around the crucial bit: > It is based on incentivizing behavior through tax breaks/credits. Who do you think has time and money to spend lobbying for new tax breaks to their benefit? Hint: it's not the poor

blowski 5y ago
It’s everybody. Politicians lobby for breaks for their constituency, as well as increasing taxes to raise revenue. Companies lobby for breaks for their industry. Issue groups lobby for breaks (or taxes) to encourage behaviours they want to see. Even the poor do this, albeit typically via unions or other collective means.
- mushbino 5y ago
  It's a comforting thought, but I can assure you the poor have virtually nobody lobbying on their behalf. Not having disposable income and all.
  - deleted 5y ago
    [deleted]
  - blowski 5y ago
    They really do. Unions, churches, charities.
    - kazoomonger 5y ago
      They really don't. You're misusing the word "lobby". Churches and charities don't lobby politically for poor people, they take them on as a righteous burden to bear. Some churches and charities are even used as tax breaks for rich people. Unions used to, to some degree. They've mostly been neutered and have very limited political capital.
      - blowski 5y ago
        That’s a “no true Scotsman” argument if ever I’ve heard one. You can’t say nobody helps the poor, then disparage the significant amount of help people do give. I belong to a church, and the minister frequently represents vulnerable people in the local community to politicians. He’s also sponsored by the church to attend events campaigning on behalf of low-paid people in the UK. And we contribute to a fund which publishes articles and runs events to raise awareness about homelessness. If that doesn’t count as lobbying for people then I don’t know what does. I do wish it were more effective.
        kazoomonger 5y ago
        It's not a "no true Scotsman" argument because "help" is a vague term to begin with. Lots of churches say nice things while extracting maximum revenue from their congregation. Can you point to any actual political changes that have occurred as a result, or is it just some nice words?
        blowski 5y ago
        I get the feeling I could write a long list with everything religious groups have done to help the poor - from the abolition of slavery, to Sikh Gurudwaras providing food, to groups like “Christians Against Poverty” campaigning against excessive interest on payday loans - but somehow none of that would count.
  - robomartin 5y ago
    This isn’t going to be a popular comment, yet, it has to be said because it is painfully obvious reality escapes some. Here it goes: The poor do not elevate the poor out of poverty. If you want to chip away at poverty you have to create incentives for entrepreneurs, investors, business people and, yes, the rich, to engage in favorable economic activity. One of the simplest ways to do this is through the tax code. As much as I hate using taxation to promote behavior, that’s the best way we know so far. We have lifted more people out of poverty through these methods than any other way. Be careful what you wish for, because government has never, in the history of humanity, elevated the poor. Quite to the contrary.
    - mushbino 5y ago
      For one, taxes are levied by governments not the free market. China has lifted 800 million out of poverty and wasn't because they all of a sudden decided to collectively pull their bootstraps. The free market is what doesn't alleviate poverty, quite the opposite. https://www.worldbank.org/en/country/china/overview https://www.worldbank.org/en/country/china/overview
      - robomartin 5y ago
        > China has lifted 800 million out of poverty and wasn't because they all of a sudden decided to collectively pull their bootstraps. The disconnect in what you are implying here is astounding. China elevated massive numbers of people out of poverty precisely because they turned violently capitalistic and entrepreneurial when it comes to business, far more so than likely any other society on the planet. The main decision their government made was to get the heck out of the way. I can understand that people who might not do business directly with Chinese companies likely lack an understanding of what things look like. Well, I do, have been for decades. I am sad to say doing business with Chinese companies can be massively easier than with US companies. The entrepreneurial spirit and drive in China is incredibly strong and refreshing to watch. You actually want to do business with them because they want to get things done. If you think government has the power to raise 800 million people out of poverty in complete isolation of a massive step change in business activity you don't have even the most fundamental understanding of economics. This is one of the most perplexing things I continue to experience on HN. This is a Y-combinator related forum. You'd think people voicing opinions here would have a modicum of business and economics chops. You'd think that, at the very least, they would devote a bit of time to doing simple math before forming opinions. And yet, what you see here time and time again are comments such as yours, which reveal a deep disconnect between even the most basic understanding of how the world operates and the importance of business.
- cto_of_antifa 5y ago
  if we return to the original test case, then, who is lobbying to make taxes not require turbotax?
- kazoomonger 5y ago
  "It's everybody" just does not capture reality. I got a tax benefit semi-recently by buying an electric car, about $7500. It was the largest I've ever gotten. Compare that to one small crumb of Trump's tax deductions that was covered by the New York Times. A $70k tax deduction for hair styling. It's just not the same. Wealth gives you an outsized influence on politics, which lets you accumulate more wealth, at a faster rate than those poorer than you.
  - robomartin 5y ago
    I don't think your perspective is accurate. Every celebrity hires armies of people to look after them. They sell their image and likeness. Everything about their public appearance is part of their business. In this context, paying $70K for a hair stylist is not different from paying $70K for a personal trainer, beautician, tanning service, nail service, massage, etc. Their business has expenses and parameters not found in other businesses. I pay a service to come clean our office, CNC and electronics manufacturing shop. This becomes a deduction. Trump, Bill Maher or Dua Lipa don't have that deduction. They have stuff like hair and clothing. I have a friend who is a real estate agent. Part of his tax deduction profile includes such things as washing and detailing his car as well as some allocation for clothing. My wife is a doctor, she gets to deduct work clothing, safety equipment, seminars and other business expenses. Yes, the tax code is a rotten mess. I agree with this 100%. I would much rather have a nominal flat tax and no deductions of any kind for anyone. Our current tax code wasn't the result of a conspiracy to benefit the rich. It's the result of decades of pushing and pulling by a bunch of different groups, each with a different objective. Where the little guy gets screwed is that the individual has very few deductions, while businesses have tons. That's the bottom line. This has nothing to do with the rich. You can go form an LLC today --HIGHLY RECOMMENDED!-- and access deductions you could not as an individual. None of these deductions have "rich person" written on them. All you need is an LLC, which isn't that expensive or difficult to create. And all you need to be a business is to sell a few items per year on eBay (or whatever). Simple example: I can deduct business mileage use of a vehicle when going to see clients. An individual can't deduct miles driven to and from work. I think this is wrong. Yet, again, it has nothing to do with benefiting the rich, you don't have to be rich to have access to these deductions, you just have to be on the side of the tax code that enables access to them. If you are puzzled by the possibilities, talk to a tax accountant and ask them if you would benefit from forming an LLC and, if you did, how you should use it.

blowski 5y ago

It’s everybody. Politicians lobby for breaks for their constituency, as well as increasing taxes to raise revenue. Companies lobby for breaks for their industry. Issue groups lobby for breaks (or taxes) to encourage behaviours they want to see. Even the poor do this, albeit typically via unions or other collective means.

mushbino 5y ago
It's a comforting thought, but I can assure you the poor have virtually nobody lobbying on their behalf. Not having disposable income and all.
- deleted 5y ago
  [deleted]
- blowski 5y ago
  They really do. Unions, churches, charities.
  - kazoomonger 5y ago
    They really don't. You're misusing the word "lobby". Churches and charities don't lobby politically for poor people, they take them on as a righteous burden to bear. Some churches and charities are even used as tax breaks for rich people. Unions used to, to some degree. They've mostly been neutered and have very limited political capital.
    - blowski 5y ago
      That’s a “no true Scotsman” argument if ever I’ve heard one. You can’t say nobody helps the poor, then disparage the significant amount of help people do give. I belong to a church, and the minister frequently represents vulnerable people in the local community to politicians. He’s also sponsored by the church to attend events campaigning on behalf of low-paid people in the UK. And we contribute to a fund which publishes articles and runs events to raise awareness about homelessness. If that doesn’t count as lobbying for people then I don’t know what does. I do wish it were more effective.
      - kazoomonger 5y ago
        It's not a "no true Scotsman" argument because "help" is a vague term to begin with. Lots of churches say nice things while extracting maximum revenue from their congregation. Can you point to any actual political changes that have occurred as a result, or is it just some nice words?
        blowski 5y ago
        I get the feeling I could write a long list with everything religious groups have done to help the poor - from the abolition of slavery, to Sikh Gurudwaras providing food, to groups like “Christians Against Poverty” campaigning against excessive interest on payday loans - but somehow none of that would count.
- robomartin 5y ago
  This isn’t going to be a popular comment, yet, it has to be said because it is painfully obvious reality escapes some. Here it goes: The poor do not elevate the poor out of poverty. If you want to chip away at poverty you have to create incentives for entrepreneurs, investors, business people and, yes, the rich, to engage in favorable economic activity. One of the simplest ways to do this is through the tax code. As much as I hate using taxation to promote behavior, that’s the best way we know so far. We have lifted more people out of poverty through these methods than any other way. Be careful what you wish for, because government has never, in the history of humanity, elevated the poor. Quite to the contrary.
  - mushbino 5y ago
    For one, taxes are levied by governments not the free market. China has lifted 800 million out of poverty and wasn't because they all of a sudden decided to collectively pull their bootstraps. The free market is what doesn't alleviate poverty, quite the opposite. https://www.worldbank.org/en/country/china/overview https://www.worldbank.org/en/country/china/overview
    - robomartin 5y ago
      > China has lifted 800 million out of poverty and wasn't because they all of a sudden decided to collectively pull their bootstraps. The disconnect in what you are implying here is astounding. China elevated massive numbers of people out of poverty precisely because they turned violently capitalistic and entrepreneurial when it comes to business, far more so than likely any other society on the planet. The main decision their government made was to get the heck out of the way. I can understand that people who might not do business directly with Chinese companies likely lack an understanding of what things look like. Well, I do, have been for decades. I am sad to say doing business with Chinese companies can be massively easier than with US companies. The entrepreneurial spirit and drive in China is incredibly strong and refreshing to watch. You actually want to do business with them because they want to get things done. If you think government has the power to raise 800 million people out of poverty in complete isolation of a massive step change in business activity you don't have even the most fundamental understanding of economics. This is one of the most perplexing things I continue to experience on HN. This is a Y-combinator related forum. You'd think people voicing opinions here would have a modicum of business and economics chops. You'd think that, at the very least, they would devote a bit of time to doing simple math before forming opinions. And yet, what you see here time and time again are comments such as yours, which reveal a deep disconnect between even the most basic understanding of how the world operates and the importance of business.
cto_of_antifa 5y ago
if we return to the original test case, then, who is lobbying to make taxes not require turbotax?
kazoomonger 5y ago
"It's everybody" just does not capture reality. I got a tax benefit semi-recently by buying an electric car, about $7500. It was the largest I've ever gotten. Compare that to one small crumb of Trump's tax deductions that was covered by the New York Times. A $70k tax deduction for hair styling. It's just not the same. Wealth gives you an outsized influence on politics, which lets you accumulate more wealth, at a faster rate than those poorer than you.
- robomartin 5y ago
  I don't think your perspective is accurate. Every celebrity hires armies of people to look after them. They sell their image and likeness. Everything about their public appearance is part of their business. In this context, paying $70K for a hair stylist is not different from paying $70K for a personal trainer, beautician, tanning service, nail service, massage, etc. Their business has expenses and parameters not found in other businesses. I pay a service to come clean our office, CNC and electronics manufacturing shop. This becomes a deduction. Trump, Bill Maher or Dua Lipa don't have that deduction. They have stuff like hair and clothing. I have a friend who is a real estate agent. Part of his tax deduction profile includes such things as washing and detailing his car as well as some allocation for clothing. My wife is a doctor, she gets to deduct work clothing, safety equipment, seminars and other business expenses. Yes, the tax code is a rotten mess. I agree with this 100%. I would much rather have a nominal flat tax and no deductions of any kind for anyone. Our current tax code wasn't the result of a conspiracy to benefit the rich. It's the result of decades of pushing and pulling by a bunch of different groups, each with a different objective. Where the little guy gets screwed is that the individual has very few deductions, while businesses have tons. That's the bottom line. This has nothing to do with the rich. You can go form an LLC today --HIGHLY RECOMMENDED!-- and access deductions you could not as an individual. None of these deductions have "rich person" written on them. All you need is an LLC, which isn't that expensive or difficult to create. And all you need to be a business is to sell a few items per year on eBay (or whatever). Simple example: I can deduct business mileage use of a vehicle when going to see clients. An individual can't deduct miles driven to and from work. I think this is wrong. Yet, again, it has nothing to do with benefiting the rich, you don't have to be rich to have access to these deductions, you just have to be on the side of the tax code that enables access to them. If you are puzzled by the possibilities, talk to a tax accountant and ask them if you would benefit from forming an LLC and, if you did, how you should use it.