User avatar
By Ginseng Sullivan
#684998
BigTimber wrote: Wed Feb 07, 2018 6:34 am This:

"If you look under the hood of the industrial economy, you can see why there is this counter-intuitive relationship between tax rates and economic growth . With high taxes, the only way to retain the bulk of the wealth created by a business is by reinvesting it in the business -- in plants, equipment, staff, research and development, new products and all the rest. But if tax rates are low, then there is more incentive to pull the wealth out, by declaring it as profits that are taxed at what turns out to be too low a rate. In other words, low taxes create an incentive for profit taking, not for business expansion and capital investment.

This in turn creates an incentive for short-term horizons in business planning. If you’re going to be taking all the profits out of a company, and take home a few million a year, why bother to reinvest anything in the business? You’re going to be rich, and never have to work again, even if the business goes bust. Or gets packed on a boat and shipped to China. Or goes "virtual" and lets all the hard work, like, you know, actually making something, be done by the lowest bidder. Employees? Don’t need them.

But employees are also customers. If enough businesses "take profits", after some length of time, the former employees also become former customers. Meaning, they stop buying. As economists phrase it, the economy's aggregate demand generation is crippled. From examining the effects of the three Republican tax cut experiments this past century, it appears the length of time for this to happen is five to seven years.

If tax rates are high enough to discourage profit taking, the best way for investors and owners to keep the profits created by a business, is to invest those profits back into the business: buying new plant and equipment that will be used for many years, and hiring and training new employees. This in turn pushes businesses toward longer-term planning, beginning to counteract the infamous quarter-to-quarter short term fixation of the financial markets. And you do not get the absurd situation you have now, where companies are posting record breaking profits, but are not buying new equipment, nor hiring new employees.

Low tax rates encourage taking wealth out of industrial companies; the wealth taken out must then be "put to work." That means more money chasing "investment" opportunities (instead of real investment in capital goods and employees), leading to price increases in financial capital or real estate or some other asset. In other words, an asset bubble. The rise in prices of an asset bubble has nothing to do with the creation of real wealth. It all looks like prosperity—until the asset bubble bursts."

Fucksakes, even I know that if you cut the tax rate on corporations, they aren't going to re-invest it, they're going to take the money home for themselves as described above.
I have no problem paying my taxes, high or low, it's what's done with the money that appalls me.
:vomit
When I mentioned the childs view of the economy this is some of what I was referring to. The fact that you pulled your money proves my point.
User avatar
By BigTimber
#685001
no money was pulled, mate, of mine anyway. where the hell would even get that idea from that post? unless you already had it in your mind what you wanted to say without actually reading and understanding what someone else is saying. typical.
User avatar
By Plow
#685004
RockinDaddyNotFromTN wrote: Fri Feb 09, 2018 10:06 am
Plow wrote: Tue Feb 06, 2018 3:23 pm
You know the stock market does this from time to time not just when trump is president. And besides the "trump" rally has another 6000 points to loose to break even from all "his" gains. Personally, I'd like to see another bad day or three before getting back in. Looks like I won't get my wish, fukn trump!

All a president can do for the markets is provide a solid footing for growth (for business and jobs) and give them a warm and fuzzy he won't try to regulate them out of business or jobs. Markets/business/jobs love them some certainty for sure.

By all accounts he doing just that and that's why the market popped the day after he was elected (or should I say the day after the dimms lost).
It took you 131 words to say: "Market's to blame when it goes down, Trump when it goes up."
No, what I said is markets "correct" from time to time even though the underline condition are most excellent. How long it will last is anyones guess but one thing you can say for sure is the market is happy, happy, happy Trump is in the White House.
User avatar
By Ginseng Sullivan
#685005
BigTimber wrote: Mon Feb 12, 2018 6:51 am no money was pulled, mate, of mine anyway. where the hell would even get that idea from that post? unless you already had it in your mind what you wanted to say without actually reading and understanding what someone else is saying. typical.

Sorry B T I was referring to Upsetter's money moves and childs understanding. I am totally with your post BT.

Plow- Of course big business loves Trump, Duh that's who he is.

I don't ever find myself agreeing with real estate moguls from NYC. If you feel he represents you and your interests you must be a much bigger player than any of us.
User avatar
By RockinDaddyNotFromTN
#685008
Plow wrote: Mon Feb 12, 2018 7:36 am
RockinDaddyNotFromTN wrote: Fri Feb 09, 2018 10:06 am
Plow wrote: Tue Feb 06, 2018 3:23 pm
You know the stock market does this from time to time not just when trump is president. And besides the "trump" rally has another 6000 points to loose to break even from all "his" gains. Personally, I'd like to see another bad day or three before getting back in. Looks like I won't get my wish, fukn trump!

All a president can do for the markets is provide a solid footing for growth (for business and jobs) and give them a warm and fuzzy he won't try to regulate them out of business or jobs. Markets/business/jobs love them some certainty for sure.

By all accounts he doing just that and that's why the market popped the day after he was elected (or should I say the day after the dimms lost).
It took you 131 words to say: "Market's to blame when it goes down, Trump when it goes up."
No, what I said is markets "correct" from time to time even though the underline condition are most excellent. How long it will last is anyones guess but one thing you can say for sure is the market is happy, happy, happy Trump is in the White House.
I appreciate you making it more concise this time but what you've said twice now is that Trump is not to be blamed for the corrections but should be given credit for the gains.
User avatar
By Plow
#685029
RockinDaddyNotFromTN wrote: Mon Feb 12, 2018 10:20 am I appreciate you making it more concise this time but what you've said twice now is that Trump is not to be blamed for the corrections but should be given credit for the gains.
What make you think it's Trumps fault for the decline?
User avatar
By RockinDaddyNotFromTN
#685031
Plow wrote: Tue Feb 13, 2018 9:28 am
RockinDaddyNotFromTN wrote: Mon Feb 12, 2018 10:20 am I appreciate you making it more concise this time but what you've said twice now is that Trump is not to be blamed for the corrections but should be given credit for the gains.
What make you think it's Trumps fault for the decline?
Because he has said publicly multiple times that he is responsible for the market.
User avatar
By RockinDaddyNotFromTN
#685035
Upsetter wrote: Tue Feb 13, 2018 11:13 am So. Why does that matter? Trump says a lot of things
It matters because if this is just another one of those "things" ie he's lying then that implies he's not actually responsible for the upswing of the market. If you think he is not lying ie he actually does control the market then you have to put everything on him.
User avatar
By austrotard
#685043
okay...

asshole when he's lying over things he cannot control. check.
asshole when things he had no control over goes to shit. check.
asshole because you believed him to be the cause of the problem you were positively sure he was lying about the whole time. yeah nah.

you may want to sharpen your pencil before you come back and declare the common denominator, mmmmates.
sorry. I don't have a link to back up my cool story, bro.

bonus fries:
isn't it funny how someone will surround themselves with links that, as far as they feel, prove their point?

if I said to you
"hey, tell me what really gives you the fucking needle and everyday I'm going to forward you information that deals with the very thing that infuriates you."
how much would you appreciate me?

"hey do you know what else is wrong?"

I mean, why would one surround themselves with company whose only common ground is hate?
how can that be healthy to anyone involved?
ftg ftg ftg ftg ftg ftg ftg ftg on a loop.

remember when they shot bin laden and everyone in ny was in the streets lalalalaing?
and then do you remember when someone said 'hey, what the fuck are we doing? we're no different than those cunts.'
and then they all stared at their feet.

well do you also remember those glorious and bountiful years with obama and half of you not being happy his policies?

that's all right.
I'll give you lot a minute to process all this. take your time.
and maybe a breath.



go trump.
if nothing else he's shown the rest of the world that 'his people' are all one and the same... mostly yelling "this is so unfair! do over!"

tossers.
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