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arcticbull 5y ago
Spectrum licenses are hardly the furnace. No more so than the DMV recognizing the revenue from car registrations or drivers license renewals.
- deleted 5y ago
  [deleted]
- foota 5y ago
  Spectrum auctions are one time, aren't they?
  - arcticbull 5y ago
    Looks like they last about 10-15 years. [1, 2] [1] https://www.cooley.com/news/insight/2020/2020-08-06-fcc-rules-5g-spectrum-auction-bidding-start-december-8 https://www.cooley.com/news/insight/2020/2020-08-06-fcc-rule... [2] https://www.dwt.com/insights/2018/10/fcc-adopts-final-licensing-rules-for-35-ghz-cbrs-s https://www.dwt.com/insights/2018/10/fcc-adopts-final-licens...
    - manquer 5y ago
      One time as in not recurring revenue for every year. If it has to be recognised annually then roughly $70B/10-15 years is the annual value.
adam_arthur 5y ago
Interesting thing about the Trump tax cuts was that government tax revenue never declined. The year after they went into effect, Federal tax revenues were higher. Was pretty shocked when I saw this because the corporate rate cut was huge. Perhaps offset by SALT changes
- Day1 5y ago
  Lookup ‘laffer curve’ for the explanation. Essentially, decreasing the tax rate incentivized more participants into the market and incentivized existing participants too
  - adam_arthur 5y ago
    For sure, I'm familiar with the concept, but wouldn't expect that effect alone to close the gap. But maybe companies actually chose to realize more gains once the rate was lowered. Need to find a good post hoc analysis of how revenue ended up higher. Also weird side note, Arthur Laffer is in his 80s but sounds/looks in his 60s in his interviews. Kind of amazing!
  - scsilver 5y ago
    It allowed a cash out of pent up wealth that was waiting for a tax favorable environments to realize.
    - adam_arthur 5y ago
      That likely explains part of it, but if you look at total revenues per year looks like it basically just subtracted one year of annual growth from trend. If it was primarily due to one time realizations, you would expect a spurt shortly afterwards, followed by decline.
      - scsilver 5y ago
        Any chance you have some some charts I can dig through, at hand?
  - gumby 5y ago
    Evidence of efficacy of the Laffer curve has been, to be kind about it, scant, and not for lack of looking! The 2017 tax change pulled taxes forward from subsequent years.
  - whakim 5y ago
keneda7 5y ago
You got a source for this? I looked on google but wasn't able to find anything about selling our strategic helium reserve?

Spectrum licenses are hardly the furnace. No more so than the DMV recognizing the revenue from car registrations or drivers license renewals.

deleted 5y ago
[deleted]
foota 5y ago
Spectrum auctions are one time, aren't they?
- arcticbull 5y ago
  Looks like they last about 10-15 years. [1, 2] [1] https://www.cooley.com/news/insight/2020/2020-08-06-fcc-rules-5g-spectrum-auction-bidding-start-december-8 https://www.cooley.com/news/insight/2020/2020-08-06-fcc-rule... [2] https://www.dwt.com/insights/2018/10/fcc-adopts-final-licensing-rules-for-35-ghz-cbrs-s https://www.dwt.com/insights/2018/10/fcc-adopts-final-licens...
  - manquer 5y ago
    One time as in not recurring revenue for every year. If it has to be recognised annually then roughly $70B/10-15 years is the annual value.

adam_arthur 5y ago

Interesting thing about the Trump tax cuts was that government tax revenue never declined. The year after they went into effect, Federal tax revenues were higher. Was pretty shocked when I saw this because the corporate rate cut was huge. Perhaps offset by SALT changes

Day1 5y ago
Lookup ‘laffer curve’ for the explanation. Essentially, decreasing the tax rate incentivized more participants into the market and incentivized existing participants too
- adam_arthur 5y ago
  For sure, I'm familiar with the concept, but wouldn't expect that effect alone to close the gap. But maybe companies actually chose to realize more gains once the rate was lowered. Need to find a good post hoc analysis of how revenue ended up higher. Also weird side note, Arthur Laffer is in his 80s but sounds/looks in his 60s in his interviews. Kind of amazing!
- scsilver 5y ago
  It allowed a cash out of pent up wealth that was waiting for a tax favorable environments to realize.
  - adam_arthur 5y ago
    That likely explains part of it, but if you look at total revenues per year looks like it basically just subtracted one year of annual growth from trend. If it was primarily due to one time realizations, you would expect a spurt shortly afterwards, followed by decline.
    - scsilver 5y ago
      Any chance you have some some charts I can dig through, at hand?
- gumby 5y ago
  Evidence of efficacy of the Laffer curve has been, to be kind about it, scant, and not for lack of looking! The 2017 tax change pulled taxes forward from subsequent years.
- whakim 5y ago

keneda7 5y ago

You got a source for this? I looked on google but wasn't able to find anything about selling our strategic helium reserve?