It’s irrelevant whether somebody is smarter, wiser, or more patient. While those are noble qualities to have, it does not mean that they deserve tax breaks.
My POV is simple. Regardless of your source of income, you shouldn’t be paying a lower tax rate than somebody who makes less.
You don’t seem to grasp the difference between the investor and the corporation. The investor and corporation are separate persons. The investor is being taxed once, and so is the corporation.
When companies invest to expand their business with after tax money, by your logic they shouldn’t be taxed on the new profit earned, because you know, it’s double taxation…
Reductio ad absurdum. You’re taking a proposal and taking it to the very extreme (redistribution), which is something nobody has proposed. Would you decline a higher paying job ( after tax ) if it put you into a higher tax bracket?
Ive always found what you are hinting at to be very interesting. For all the free trade agreements people want it really only speaks to free movement of capital, could you imagine trying to get a movement that would allow labor the freedom to move anywhere and take advantage of better laws? Economics is built on studying capital and labor but it does seem as though governments always give capital preferred treatment at the expense of labor. I assume its because most governments are there to protect those with capital. Who knows, just rambling, not really sure what the right answer is but we have historically low tax rates and that sure hasnt spurred the growth we were told it would.
I love the liberal mindset.
“College makes you rich!!! Free college for everyone!!! We want everyone to be rich!!!”
“Damn the rich!!! Damn the man!!! If you’re rich, you deserve to be taxed into oblivion so that others can get rich!!! Then we can tax their rich asses too!!!”
The emotion that boiled up from my question is surprising. I’m not sure how my question could have offended you, but I’m sorry that it has (although, it seems like you jumped the gun). I can’t say that it’s either of those things that caused me to ask the question. Part of me wanted to ask because there’s a lot of garbage floating around since it’s election time, and some people take everything they hear and think it’s the truth. So, I asked if Palantir genuinely intended for it to be absolute or if he meant the statement on a relative basis. The lack of precision with words is a problem with the media (in general, and people consume this “information”), so I try to clarify what someone believes or understands because it’s silly to assume you know what’s going on inside the mind of another person (especially over the internet).
You don’t seem to understand that the investors ARE the corporation. There is no difference between the corporation and its underlying investors.
All corporations need capital. That capital is initially provided by a person, and it continues to be provided by people.
I’ll keep it real simple. If a person invests $100,000 in a corporation, and the corporation makes an additional $100,000, then the corporation gets taxed on $100,000, or ~$35,000. Total cash in corporation = $165,000.
The person then decides to take out their cash. They sell their stake in the corporation for $165,000. $65k is capital gain (taxed at 20%), and the other $100k is a nontaxable return of principal. Therefore, they make $65,000 - (65,000 * .2) = $52,000 on their capital gain.
Ergo, they are taxed at a 48% rate, or 1- [(1-.35) * (1-.2)] = .48.
Corporations do not beget other corporations. They’re not like orcs that just spring up out of the ground. They are capitalized by people (or by other corporations, which are capitalized by people).
If you see it any other way, then you’re…an idiot.
You are objectively an idiot if you believe this and can’t grasp the concept that they are different persons with different treatments in both legal and economic terms.
Since there is no point reasoning with you in terms of logic, [redacted by moderator]. Enjoy.
^Crossed a line.
Don’t ever come to wherever I am, because I will beat the shit out of you.
Laughing so hard, can’t breath, this exchange needs to be framed.
yikes
I realize you got frustrated there, Palantir, but please cool it down with the personal attacks.
For the record, I agree that the corporation as an operating entity and the investors as debt holders and equity owners are different entities, subject to different incentives, just as management isn’t necessarily the same as the company owners. But the other stuff you brought up was uncalled for.
Oh man, that was the hardest core piledriver ad hominem I’ve seen in the history of AF, devastating attack. Wish I would have printed before it got deleted.
I haven’t been reading but just wanted to say that Trump posted on Facebook that he won the debate according to some online polls (time, drudge report, fox 5 in some town, etc) so that’s that, Trump 1, crooked Hillary 0
Typical Trump distorted-reality, he said EVERY poll. By any objective measure he got crushed harder than Palantir crushed whats-his-bucket a few posts back.
"Every on-line poll, Time Magazine, Drudge etc., has me winning the debate." (twitter)
He made a personal attack in response to an argument, something that was completely uncalled for. I didn’t start this.
Greenman is a monkey. Not sure why he hasnt been called out before
Yet, you managed to entangle yourself in it… You’re each responsible for your own actions (it’s an internet forum, too… it’s not hard to walk away from the keyboard for a minute).
So a corporate tax is not a tax on the owners of a corporation? Do explain. Whose assets are being confiscated if not the shareholder’s?
Funny thing that this exact topic is covered in the CFA program. You are required to calculate an effective dividend tax rate in order to get credit. No doubt greenie was credited the appropriate points. Were you?
A decent write-up today covering this topic. For the record, no poll is all-inclusive (even those “scientific”) but this article speaks to the importance of emotional intelligence and personality captured by some online polls.