5 ms·

I think you are speaking of the US in it's current state, where the loopholes and lower taxes exist. My point is that businesses are encouraged by financial inc

by wallawe 13y ago

I think you are speaking of the US in it's current state, where the loopholes and lower taxes exist. My point is that businesses are encouraged by financial incentives. If you raise taxes you are incentivizing the company to move jobs elsewhere. Have we not seen this play out with the high cost of labor in manufacturing settings? The same will apply if you tax these companies at exorbitant rates. Long term, you will damage the US jobs market.

phaemon 13y ago
>My point, and you can take a basic econ class to learn such info Oh well, if you learned it in school then it must be true!
- talmand 13y ago
  Forget school, I just read it on the Internet. So it is true.
deleted 13y ago
[deleted]
lubos 13y ago
Yes, businesses are encouraged by financial incentives and that's why Apple, Google, Facebook and countless of other IT giants and startups are based in Silicon Valley - the most expensive place to hire employees. Meanwhile corporate taxes and personal income taxes are at record low and it still didn't stop all manufacturing jobs to be outsourced to China. See your logical fallacy? Sometime "basic econ class" will teach you... well... just the basics.
gaadd33 13y ago
How does that square with the fact that some of the fastest growing years in the past 100 years were years when the top corporate tax rate was 50% and the personal tax rate exceeded 70%?
- Malician 13y ago
  Do you know what the effective tax rates were during those years? There was no "alternative minimum tax" to limit the abuse of deductions, which I believe hearing were rampant. (This isn't to say you are wrong, at all; just that the actual tax businesses are really required to pay must be considered, not the claimed values on the sticker sheet.)
  - andrewcooke 13y ago
    hi - have you seen http://www.economist.com/news/briefing/21588057-scientists-think-science-self-correcting-alarming-degree-it-not-trouble http://www.economist.com/news/briefing/21588057-scientists-t... and https://news.ycombinator.com/item?id=6566915 https://news.ycombinator.com/item?id=6566915 - this is exactly what you were worried about at https://news.ycombinator.com/item?id=6487356 https://news.ycombinator.com/item?id=6487356 (i would have emailed you, but i can't find an email, so am replying here - given that economist article i may have underestimated the importance of the effect).

by wallawe 13y ago

phaemon 13y ago

>My point, and you can take a basic econ class to learn such info Oh well, if you learned it in school then it must be true!

talmand 13y ago
Forget school, I just read it on the Internet. So it is true.

deleted 13y ago

[deleted]

lubos 13y ago

Yes, businesses are encouraged by financial incentives and that's why Apple, Google, Facebook and countless of other IT giants and startups are based in Silicon Valley - the most expensive place to hire employees. Meanwhile corporate taxes and personal income taxes are at record low and it still didn't stop all manufacturing jobs to be outsourced to China. See your logical fallacy? Sometime "basic econ class" will teach you... well... just the basics.

gaadd33 13y ago

How does that square with the fact that some of the fastest growing years in the past 100 years were years when the top corporate tax rate was 50% and the personal tax rate exceeded 70%?

Malician 13y ago
Do you know what the effective tax rates were during those years? There was no "alternative minimum tax" to limit the abuse of deductions, which I believe hearing were rampant. (This isn't to say you are wrong, at all; just that the actual tax businesses are really required to pay must be considered, not the claimed values on the sticker sheet.)
- andrewcooke 13y ago
  hi - have you seen http://www.economist.com/news/briefing/21588057-scientists-think-science-self-correcting-alarming-degree-it-not-trouble http://www.economist.com/news/briefing/21588057-scientists-t... and https://news.ycombinator.com/item?id=6566915 https://news.ycombinator.com/item?id=6566915 - this is exactly what you were worried about at https://news.ycombinator.com/item?id=6487356 https://news.ycombinator.com/item?id=6487356 (i would have emailed you, but i can't find an email, so am replying here - given that economist article i may have underestimated the importance of the effect).