Taxes!

[UCGal]

[quote=jstoesz]
My personal favorite it to get rid of the income, payroll tax, and corporate income tax etc. and replace it with only a consumption tax like the european VAT applied to all levels of spending corporate and individual equally.
[/quote]

Some questions on how this would work for corporations and families:
– would the cost of labor be taxed… Most corporations spend a good deal on salaries, benefits… would this be taxed? (This is a huge paradigm shift – pretty much the opposite of the current taxation where these costs reduced the taxable income.) Buying new equipment or building a new factory – would that be taxed?
– would *everything* you buy be taxed. So if I buy a CD or a savings bond or a share of stock – it’s taxed. If I buy a house, it’s taxed. If I buy a cup of coffee, or a plane ticket, it’s taxed? How about paying tax on my utilies… since that’s consumption too.

It’s an interesting idea… as long as it’s applied uniformly… but somehow I don’t see this EVERY happening. There would be exclusions for some things, and not for others. I just don’t see how this could ever happen in a fair, consistent manner.

[jstoesz]

UCGal…you are right. It is fantasy land, but a fun thought experiment none the less.

Eugene,

You do realize that passive income is crucial to a healthy expanding economy? It is not just simply gambling (save commodities), but provides capital to people who have no money but good ideas. Without people making investments (looking for passive income), we would have no economic development. We would have only a fortified wealthy class untouchable by the up and coming innovators. Only in America can you have a good idea with no collateral and have someone lend you millions. Therefore, we should not want to tax either passive income or labor income, but should encourage both.

[jstoesz]

UCGal…you are right. It is fantasy land, but a fun thought experiment none the less.

Eugene,

You do realize that passive income is crucial to a healthy expanding economy? It is not just simply gambling (save commodities), but provides capital to people who have no money but good ideas. Without people making investments (looking for passive income), we would have no economic development. We would have only a fortified wealthy class untouchable by the up and coming innovators. Only in America can you have a good idea with no collateral and have someone lend you millions. Therefore, we should not want to tax either passive income or labor income, but should encourage both.

[jstoesz]

UCGal…you are right. It is fantasy land, but a fun thought experiment none the less.

Eugene,

You do realize that passive income is crucial to a healthy expanding economy? It is not just simply gambling (save commodities), but provides capital to people who have no money but good ideas. Without people making investments (looking for passive income), we would have no economic development. We would have only a fortified wealthy class untouchable by the up and coming innovators. Only in America can you have a good idea with no collateral and have someone lend you millions. Therefore, we should not want to tax either passive income or labor income, but should encourage both.

[jstoesz]

UCGal…you are right. It is fantasy land, but a fun thought experiment none the less.

Eugene,

You do realize that passive income is crucial to a healthy expanding economy? It is not just simply gambling (save commodities), but provides capital to people who have no money but good ideas. Without people making investments (looking for passive income), we would have no economic development. We would have only a fortified wealthy class untouchable by the up and coming innovators. Only in America can you have a good idea with no collateral and have someone lend you millions. Therefore, we should not want to tax either passive income or labor income, but should encourage both.

[jstoesz]

UCGal…you are right. It is fantasy land, but a fun thought experiment none the less.

Eugene,

You do realize that passive income is crucial to a healthy expanding economy? It is not just simply gambling (save commodities), but provides capital to people who have no money but good ideas. Without people making investments (looking for passive income), we would have no economic development. We would have only a fortified wealthy class untouchable by the up and coming innovators. Only in America can you have a good idea with no collateral and have someone lend you millions. Therefore, we should not want to tax either passive income or labor income, but should encourage both.

[SK in CV]

[quote=jstoesz]
You do realize that passive income is crucial to a healthy expanding economy? It is not just simply gambling (save commodities), but provides capital to people who have no money but good ideas. Without people making investments (looking for passive income), we would have no economic development. We would have only a fortified wealthy class untouchable by the up and coming innovators. Only in America can you have a good idea with no collateral and have someone lend you millions. Therefore, we should not want to tax either passive income or labor income, but should encourage both.[/quote]

To a great extent, that is hogwash. If you log into your etrade account, and purchase 100 shares of Ford, it does nothing to further economic development. It has no effect on whether Ford expands their workforce or opens a new plant. It provides no new capital. Same logic applies to the billions of dollars that are traded daily on the world’s exchanges for common stocks, mutual funds, ETF’s or the secondary markets for fixed income securities. IPO’s, initial direct investments in new companies provides that capital. A tiny fraction of the total invested capital.

[SK in CV]

[quote=jstoesz]
You do realize that passive income is crucial to a healthy expanding economy? It is not just simply gambling (save commodities), but provides capital to people who have no money but good ideas. Without people making investments (looking for passive income), we would have no economic development. We would have only a fortified wealthy class untouchable by the up and coming innovators. Only in America can you have a good idea with no collateral and have someone lend you millions. Therefore, we should not want to tax either passive income or labor income, but should encourage both.[/quote]

To a great extent, that is hogwash. If you log into your etrade account, and purchase 100 shares of Ford, it does nothing to further economic development. It has no effect on whether Ford expands their workforce or opens a new plant. It provides no new capital. Same logic applies to the billions of dollars that are traded daily on the world’s exchanges for common stocks, mutual funds, ETF’s or the secondary markets for fixed income securities. IPO’s, initial direct investments in new companies provides that capital. A tiny fraction of the total invested capital.

[SK in CV]

[quote=jstoesz]
You do realize that passive income is crucial to a healthy expanding economy? It is not just simply gambling (save commodities), but provides capital to people who have no money but good ideas. Without people making investments (looking for passive income), we would have no economic development. We would have only a fortified wealthy class untouchable by the up and coming innovators. Only in America can you have a good idea with no collateral and have someone lend you millions. Therefore, we should not want to tax either passive income or labor income, but should encourage both.[/quote]

To a great extent, that is hogwash. If you log into your etrade account, and purchase 100 shares of Ford, it does nothing to further economic development. It has no effect on whether Ford expands their workforce or opens a new plant. It provides no new capital. Same logic applies to the billions of dollars that are traded daily on the world’s exchanges for common stocks, mutual funds, ETF’s or the secondary markets for fixed income securities. IPO’s, initial direct investments in new companies provides that capital. A tiny fraction of the total invested capital.

[SK in CV]

[quote=jstoesz]
You do realize that passive income is crucial to a healthy expanding economy? It is not just simply gambling (save commodities), but provides capital to people who have no money but good ideas. Without people making investments (looking for passive income), we would have no economic development. We would have only a fortified wealthy class untouchable by the up and coming innovators. Only in America can you have a good idea with no collateral and have someone lend you millions. Therefore, we should not want to tax either passive income or labor income, but should encourage both.[/quote]

To a great extent, that is hogwash. If you log into your etrade account, and purchase 100 shares of Ford, it does nothing to further economic development. It has no effect on whether Ford expands their workforce or opens a new plant. It provides no new capital. Same logic applies to the billions of dollars that are traded daily on the world’s exchanges for common stocks, mutual funds, ETF’s or the secondary markets for fixed income securities. IPO’s, initial direct investments in new companies provides that capital. A tiny fraction of the total invested capital.

[SK in CV]

[quote=jstoesz]
You do realize that passive income is crucial to a healthy expanding economy? It is not just simply gambling (save commodities), but provides capital to people who have no money but good ideas. Without people making investments (looking for passive income), we would have no economic development. We would have only a fortified wealthy class untouchable by the up and coming innovators. Only in America can you have a good idea with no collateral and have someone lend you millions. Therefore, we should not want to tax either passive income or labor income, but should encourage both.[/quote]

To a great extent, that is hogwash. If you log into your etrade account, and purchase 100 shares of Ford, it does nothing to further economic development. It has no effect on whether Ford expands their workforce or opens a new plant. It provides no new capital. Same logic applies to the billions of dollars that are traded daily on the world’s exchanges for common stocks, mutual funds, ETF’s or the secondary markets for fixed income securities. IPO’s, initial direct investments in new companies provides that capital. A tiny fraction of the total invested capital.

[jstoesz]

Why would Ford be a publically traded company if not for greater acces to capital?

So yes when you buy a Ford share you are giving them your hard earned money which they in turn put to work investing in harder assets…like robots (or perhaps jobs for the robot company). When you only buy one share you are only contributing a small amount, individually insignificant can quickly become collectively significant.

[jstoesz]

Why would Ford be a publically traded company if not for greater acces to capital?

So yes when you buy a Ford share you are giving them your hard earned money which they in turn put to work investing in harder assets…like robots (or perhaps jobs for the robot company). When you only buy one share you are only contributing a small amount, individually insignificant can quickly become collectively significant.

[jstoesz]

Why would Ford be a publically traded company if not for greater acces to capital?

So yes when you buy a Ford share you are giving them your hard earned money which they in turn put to work investing in harder assets…like robots (or perhaps jobs for the robot company). When you only buy one share you are only contributing a small amount, individually insignificant can quickly become collectively significant.

[jstoesz]

Why would Ford be a publically traded company if not for greater acces to capital?

So yes when you buy a Ford share you are giving them your hard earned money which they in turn put to work investing in harder assets…like robots (or perhaps jobs for the robot company). When you only buy one share you are only contributing a small amount, individually insignificant can quickly become collectively significant.

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