GOP introduces their own health care bill---with other stuff in it too

[viper37]

This is another example of using taxes to promote behavior. The thinking presumably is that incentivizing investment creates jobs by providing capital for growth. The more investment capital there is, the easier it is to get. The easier it is to get the lower the barriers are to growth and innovation. The lower the barriers, the more entrepreneurial enterprises will spring up blah blah blah.

I'm rather cold on the concept of using taxes as a behavior modifier, but there you go.

it's theoritically true.  However, it's not isolated in itself.
And there's potential for abuse, as pointed before, both by me and Minsky.

[viper37]

actually, it looks more like a bell curve than anything else.  As you increase it, the marginal gains are less.

You mean you could get a Republican like Hans to admit that there's a point at which they shouldn't argue for additional tax cuts? I'll believe it when I see it.

same as arguing with a leftist about raising taxes.  They always figure high taxes = more money, while often, if you raise it too much, you global revenues decrease.

[viper37]

Dividends should be taxed like all other income.  Dividends from foreing companies should be taxed higher. 

No, they should be taxed at the cap gains rate. Otherwise, why not just pay your "dividends" in the form of stock repurchases? In a textbook world, a stock repurchase benefits shareholders by the same amount as a dividend, only a stock repurchase is in the form of a cap gain.

the gain in shares depends on the evolution of the share prices and doesn't give you any money in your pocket right away.
However, the dividen gives you cash, right now.

And in the case of a local, small private firm, giving more stocks to employees without ever the possibility of getting a $ dividend is not attractive.

And it could also be made that if the dividend is paid in stocks, you get taxed as if it was a monetary dividend.  I'm not too sure on how it works up here...  The rules have been changed a few years ago.

[DontSayBanana]

I can't answer for his specifics, however the general idea of the tax refund (and I've had numerous debate with people, trying to convince them to pay less taxes during the year and instead invest the money), is that if you have that money in your pocket during the year, you will spend it on all kind of things.  More expensive clothes, a little bit more travels, a little bit more booze/cigarettes/drugs, while when you get a big lump sum a year later, you buy something big, or you use it for critical needs.

It's like forced saving without interests.  When banks don't pay us any interests, we're mad, but when we do it to ourselves, it's ok

It's forced savings without interest, but not by me.  For me as a single claimant, they rape me on income taxes, even without shorting myself as claim-0.  Of course, I also breathe a sigh of relief when the school issues refund checks; I's just poor pipple.

[The Minsky Moment]

Here's a simple proposal: tax all forms of gains equally: wage income, partnership income, dividends, interests, short term captial gains, long term cap gains everything.  That way you euthanize the huge industry out there of people creating shelters -- both legit and not so legit - seeking to make one form of income look like another to get favorable tax treatment.

The one thing the GOP has right is scrapping the corporate income tax.  Taxing artificial persons is almost as stupid as pretending they have a First Amendment right to buy elections.

[alfred russel]

Here's a simple proposal: tax all forms of gains equally: wage income, partnership income, dividends, interests, short term captial gains, long term cap gains everything.  That way you euthanize the huge industry out there of people creating shelters -- both legit and not so legit - seeking to make one form of income look like another to get favorable tax treatment.

The one thing the GOP has right is scrapping the corporate income tax.  Taxing artificial persons is almost as stupid as pretending they have a First Amendment right to buy elections.

x2

[Admiral Yi]

Up to some point.  If people are taxed more for work than for investments, they may choose to work less and invest more to supplement their revenues.

Invest more of what?

[DGuller]

Here's a simple proposal: tax all forms of gains equally: wage income, partnership income, dividends, interests, short term captial gains, long term cap gains everything.  That way you euthanize the huge industry out there of people creating shelters -- both legit and not so legit - seeking to make one form of income look like another to get favorable tax treatment.

The one thing the GOP has right is scrapping the corporate income tax.  Taxing artificial persons is almost as stupid as pretending they have a First Amendment right to buy elections.

x3

[ulmont]

The one thing the GOP has right is scrapping the corporate income tax.  Taxing artificial persons is almost as stupid as pretending they have a First Amendment right to buy elections.

Do you want all corporations to have pass-through tax treatment, or do you want piercing the veil for tax purposes in your new world to be easier, or some other solution to the immediate "John Doe Enterprises" problem?

[The Minsky Moment]

Do you want all corporations to have pass-through tax treatment, or do you want piercing the veil for tax purposes in your new world to be easier, or some other solution to the immediate "John Doe Enterprises" problem?

Undecided but probably the solution is take make close corps pass-through.  It isn't going to be an issue for public corps.