4 ms·
Tomfoolery. >According to many people in favor of higher taxes, quantitative easing has no ill effects. Why don't they just ease $5B into existence? It increa
by phillmv 15y ago
Tomfoolery.
>According to many people in favor of higher taxes, quantitative easing has no ill effects. Why don't they just ease $5B into existence?
It increases inflation. Right now, it's better to have more people employed/have the economy growing than it is to have inflation below 2%.
QE isn't exactly a progressive tool of choice, and I'm only minimally informed, but iirc that's the broad keynesian view as to why in theory it's at least better than doing nothing at all.
>And why don't people concerned with "unfair" taxes call for Gaga's rate to be lowered rather than Zuck's to be raised?
Because I'm not worried about Gaga's overall income. In fact, she probably ought to be taxed at a higher rate, because people like her comprise of almost zero per cent of the population. Cry me a river, in other words; it's not at her income range we're concerned with inequality.
>A tax like this would push growing startups to grow outside the US a few years before IPO.
Serious question time. Is this even reasonable?
If Zuck could have saved a cool billion in taxes, what's stopping him from doing just that?
If I'm say a Canadian citizen and I live in Canada but I own a fuckload of Facebook stock that qualifies as a salary, where do I file income taxes?
>This kind of foolish proposal would just drive more US businesses overseas.
These kind of astronomical windfall events are extremely rare and as I've denoted above, what you describe is already currently possible. So… why don't we already see this?
Other than the fact that you there are many advantages to having lots of engineering staff located in the United States/North America.
- deleted 15y ago[deleted]
- nhaehnle 15y ago> > According to many people in favor of higher taxes, > > quantitative easing has no ill effects. Why don't they > > just ease $5B into existence? > > It increases inflation. Right now, it's better to have > more people employed/have the economy growing than it is > to have inflation below 2%. There's an orthodox misconception here that is taking some time to be fixed / properly understood by economists. Quantitative easing is nothing more than an asset swap for banks. It increases the reserves in the banking system, yes, but it does not actually put more money into the hands of people who will spend it in the real economy. Its effect is at best indirect: it pushes the interbank lending rate down, and that can increase the pool of potential borrowers. But the effect is marginal at best. Note in particular how the "money multiplier" dropped after QE: http://research.stlouisfed.org/fred2/series/MULT?cid=25 http://research.stlouisfed.org/fred2/series/MULT?cid=25
- phillmv 15y agoRight. I tried to caveat myself, for I forgot the exact reason I wasn't supposed to like it. Institutionally, we seem adverse to any sort of intervention that does not go through a banking intermediary.