The DNC KenyanCommieMooselimbDidn'tBuildIt MegaThread!

[Admiral Yi]

Half of America pays zero taxes or otherwise contributes nothing to society?

Yikes.

Half of Americans pay no income tax but do pay Social Security and Medicare taxes.  In theory the last two don't help buy big bricks of cheese for those who are struggling. 

[Maximus]

How many of those do productive work that enable others to pay income tax? How many are developing their human capital enabling themselves to pay more income taxes in the future? I could go on, but the point is just because one isn't paying income tax doesn't mean they aren't contributing to the cheese.

[Caliga]

But, companies are simply not hiring.  They don't want to hire, they don't need to hire.  And they're not going to hire until the electoral smoke clears.

My company is hiring like crazy.  I just interviewed a guy yesterday, in fact.  He worked in Abu Dhabi for three years... man did he have some funny 'those crazy Arabs!'-type stories.

[Admiral Yi]

How many of those do productive work that enable others to pay income tax? How many are developing their human capital enabling themselves to pay more income taxes in the future? I could go on, but the point is just because one isn't paying income tax doesn't mean they aren't contributing to the cheese.

Well, that's not a very good point.  Cheese costs money.

[Maximus]

How many of those do productive work that enable others to pay income tax? How many are developing their human capital enabling themselves to pay more income taxes in the future? I could go on, but the point is just because one isn't paying income tax doesn't mean they aren't contributing to the cheese.

Well, that's not a very good point.  Cheese costs money.

How are these two sentences related?

[Admiral Yi]

How are these two sentences related?

The linkage is tax revenue and expenditure.  If you're developing your human capital you're not paying for any cheese.  In the future you will probably be paying for cheese.

[Maximus]

Then that future cheese has an expected present value.

However, how about the other example. Someone working for 9 bucks an hour in a factory while supporting 3 kids is probably not paying income tax. Assuming no hijinks, however, they are contributing to their employers earnings and the employer is paying taxes on those earnings.

[garbon]

Then that future cheese has an expected present value.

Though to what extent is it meaningful insofar as I know individuals who went to Stanford which would suggest they'd later contribute a lot but then became layabouts after school (or generously some became teachers).  Expected present value would leave you with quite a shortfall.  Unless you want to say something about how the teachers are increasing the potential of their students but doesn't that get really fuzzy?

[Admiral Yi]

Then that future cheese has an expected present value.

You can't buy present cheese with expected future cheese.

However, how about the other example. Someone working for 9 bucks an hour in a factory while supporting 3 kids is probably not paying income tax. Assuming no hijinks, however, they are contributing to their employers earnings and the employer is paying taxes on those earnings.

Profit is the return on the employer's capital.

[Maximus]

Though to what extent is it meaningful insofar as I know individuals who went to Stanford which would suggest they'd later contribute a lot but then became layabouts after school (or generously some became teachers).  Expected present value would leave you with quite a shortfall.  Unless you want to say something about how the teachers are increasing the potential of their students but doesn't that get really fuzzy?

In theory at least, expected present value takes into account the actual probability that the student is increasing their income.

[Maximus]

You can't buy present cheese with expected future cheese.

Sure you can. I can go to the store with a credit card and buy cheese with expected future income.

Profit is the return on the employer's capital.

If the employee isn't contributing to the employer's profit, why is the employer paying him?

[crazy canuck]

Then that future cheese has an expected present value.

You can't buy present cheese with expected future cheese.

However, how about the other example. Someone working for 9 bucks an hour in a factory while supporting 3 kids is probably not paying income tax. Assuming no hijinks, however, they are contributing to their employers earnings and the employer is paying taxes on those earnings.

Profit is the return on the employer's capital.

Which the employer cannot obtain without that worker earning a mere 9 bucks per hour.  If labour costs rise his profit evaporates.  Also, for larger employers most often it is not the employers capital but the capital of the shareholders of the employer which often includes those very employees.  And in almost every case the capital is largely provided by lending institutions.

The world is not mittens blue blood where anyone can borrow from their parents to become an "employer" 

[garbon]

Though to what extent is it meaningful insofar as I know individuals who went to Stanford which would suggest they'd later contribute a lot but then became layabouts after school (or generously some became teachers).  Expected present value would leave you with quite a shortfall.  Unless you want to say something about how the teachers are increasing the potential of their students but doesn't that get really fuzzy?

In theory at least, expected present value takes into account the actual probability that the student is increasing their income.

Yeah but then if they never actually achieved anything then they didn't actually contribute to cheese.

[Jacob]

The linkage is tax revenue and expenditure.  If you're developing your human capital you're not paying for any cheese.  In the future you will probably be paying for cheese.

It's a great cheese ecosystem.

[garbon]

The linkage is tax revenue and expenditure.  If you're developing your human capital you're not paying for any cheese.  In the future you will probably be paying for cheese.

It's a great cheese ecosystem.

I don't know. The hordes of individuals with newly minted law degrees don't seem to be helping the system much or not as much as one would have expected several years ago.