tag:blogger.com,1999:blog-196554259323465442.post4267484116125306168..comments2023-10-27T03:41:13.171-07:00Comments on Warning Signs: A Year After Obama's ElectedAlan Carubahttp://www.blogger.com/profile/10901162110385985193noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-196554259323465442.post-26505763661636387532008-10-27T23:03:00.000-07:002008-10-27T23:03:00.000-07:00Please feel free to use the ideas and concepts to ...Please feel free to use the ideas and concepts to publish a note on this topic. Taxation is at the forefront of the political debate now.<BR/>Please write an article on this, people need to understand the rhetoric behind 'Big Oil' and 'Tax the Rich'.joe blowehttps://www.blogger.com/profile/17194443741485086403noreply@blogger.comtag:blogger.com,1999:blog-196554259323465442.post-60077252622251945652008-10-27T17:06:00.000-07:002008-10-27T17:06:00.000-07:00Yes, your analysis does seem correct to me.Yes, your analysis does seem correct to me.Alan Carubahttps://www.blogger.com/profile/10901162110385985193noreply@blogger.comtag:blogger.com,1999:blog-196554259323465442.post-48762693660233736772008-10-27T15:51:00.000-07:002008-10-27T15:51:00.000-07:00I have been trying to follow ‘a dollar’ through it...I have been trying to follow ‘a dollar’ through its journey in the economy. Some things seem stand out:<BR/><BR/>Who actually owns a corporation ?<BR/>o The majority of the corporations that are referred to in the media are publicly traded and therefore owned by the multitudes.<BR/>o It brings the question, who is ‘big oil’ ? A conglomerate of ‘teacher’s funds’, retirement funds, and millions of single investors etc. <BR/>o When we tax a corporation, we are reducing the dividends that would be paid to the investors, by itself a betrayal of trust because the investors had an expectation of profit in the first place. We are also reducing the corporation’s ability to improve its business processes through reinvestment which usually includes hiring more people.<BR/>o When we tax a corporation, we are making money more scarce in the money market, making it more difficult for it and other businesses to borrow. Interest rates tend to rise.<BR/>o The collected tax money is spent by the government in much less efficient ways than would otherwise be in a ‘profit seeking’ market function.<BR/>o In essence, the fundamental question: ‘Who pays in the end ?’ We all do.<BR/><BR/>One example, Sarah Palin claims to have imposed a ‘windfall profits’ tax on the oil companies in Alaska, and is proud of this record.<BR/>I consider it to be a bad move, even immoral to some extent. It is the breaking of a ‘covenant’. The investors expected ‘unchallenged’ return – once someone starts playing G-d deciding how much is too much profit, who knows where it will end…<BR/><BR/>When we tax ‘The rich’, there is a similar situation happening. The rich person uses some percent of their income for consumption but a lot of it ,in the case of the very rich especially, is reverted back into investment in the economy. Again, it makes the money in the economy more scarce and costly – we are really taxing everyone.<BR/><BR/>So, in conclusion, using taxation as a form of wealth redistribution also has the side effect of eroding the economy and making everyone poor.<BR/><BR/>Does that sound correct to you ?joe blowehttps://www.blogger.com/profile/17194443741485086403noreply@blogger.com