Lets force Walmart, at gunpoint, to give $5/hour raise because we are so caring

[EdwardBaiamonte]

To the Republican supplied inventions, honestly, I ignored it because it is absolutely stupid.

so you think Democrats are the supply siders???? Do you ever get anything right??

 

[EdwardBaiamonte]

higher tax rates actually encourage more investments as the IRR required to justify an investment decline.

if it was me as taxes went up my investment capital would become more precious and so I want a higher IRR not lower. Also the higher the taxes the lower the IRR so the less likely I would be to make an investment.

Your accountant would show you otherwise. And you are confusing the IRR with the after tax return and the end result with the decision making process.

Irr can be computed before or after tax. Sorry to rock your world.

And when you incorporate the marginal tax rate into the equation the IRR required to justify an investment DECLINES as the marginal tax rate goes up. That is fundamental finance. A math equation. Not subject to interpretation.

so then for the 4th time show me one person on earth who agrees that higher taxes produce more investments!!! Its a win win right!!!!

 

[Winston]

I am like Warren Buffet, I have yet to meet an investor that refused to engage in a profitable activity because of the tax rate.

of course thats 100% stupid and typical of Buffett. What you pay in taxes is then not available for investment

Since when does a company pay taxes on money it invests in it's business?

what??? it doesn't pay taxes on what it invests and it doesn't invest what it pays in taxes. Now do you understand?
do you understand that if you send $1 to Washington they then have the dollar and you don't?

I understand this much. I am a businessman. I have not seen a W2 this century. If I can invest a dollar and get more than a dollar back, I do it. Then I sort out the tax thing. In fact, like most investors, I am more concerned about the return of my dollar than the return on that dollar. Which speaks to that whole inverse relationship between the marginal tax rate and the cost of capital. I am more likely to make a risky investment if the government is willing to take a larger part of that risk. At a fifty percent tax rate the government takes on fifty percent of the loss. But at ten percent the government is only going to give me ten cents on the dollar.

great so the more we raise taxes the more the economy will boom!!! Is there another person on earth who agrees with you? Is this called the communist school of economics???

Yes, if taxes were one hundred percent the economy would grind to a halt. But I doubt government revenues would be spilling over if tax rates were zero. The Laffer curve is called a curve. Perhaps that is over your head as well.

 

[Winston]

From the get go we determined that there was enough profit within Walmart to pay that five dollar raise.

figure it out, 2.3 million employees at $5/hour more bankrupts Walmart and if liberals had their way the entire economy. Pure ignorance

Dude, the math was already done. They would still turn a profit. You not got a calculator?

 

[EdwardBaiamonte]

IRR required to justify an investment DECLINES as the marginal tax rate goes up. .

cant imagine why Trump wants to drop corporate taxes to 15% from 40% can you?? And why it caused greatest reaction in stock prices after any presidential election in US history??

 

[EdwardBaiamonte]

Dude, the math was already done. They would still turn a profit. You not got a calculator?

yes it comes to $19 billion, enough to bankrupt company and economy!!! Are you a communist?

 

[EdwardBaiamonte]

of course thats 100% stupid and typical of Buffett. What you pay in taxes is then not available for investment

Since when does a company pay taxes on money it invests in it's business?

what??? it doesn't pay taxes on what it invests and it doesn't invest what it pays in taxes. Now do you understand?
do you understand that if you send $1 to Washington they then have the dollar and you don't?

I understand this much. I am a businessman. I have not seen a W2 this century. If I can invest a dollar and get more than a dollar back, I do it. Then I sort out the tax thing. In fact, like most investors, I am more concerned about the return of my dollar than the return on that dollar. Which speaks to that whole inverse relationship between the marginal tax rate and the cost of capital. I am more likely to make a risky investment if the government is willing to take a larger part of that risk. At a fifty percent tax rate the government takes on fifty percent of the loss. But at ten percent the government is only going to give me ten cents on the dollar.

great so the more we raise taxes the more the economy will boom!!! Is there another person on earth who agrees with you? Is this called the communist school of economics???

Yes, if taxes were one hundred percent the economy would grind to a halt. But I doubt government revenues would be spilling over if tax rates were zero. The Laffer curve is called a curve. Perhaps that is over your head as well.

nice try but for 5th time are you going to name the one idiot on earth who agrees with you that the more we raise taxes the more the economy will boom????? you said its fact but apparently its a fact that only you know. can I ask how old you are?

 

[Winston]

higher tax rates actually encourage more investments as the IRR required to justify an investment decline.

if it was me as taxes went up my investment capital would become more precious and so I want a higher IRR not lower. Also the higher the taxes the lower the IRR so the less likely I would be to make an investment.

Your accountant would show you otherwise. And you are confusing the IRR with the after tax return and the end result with the decision making process.

Irr can be computed before or after tax. Sorry to rock your world.

And when you incorporate the marginal tax rate into the equation the IRR required to justify an investment DECLINES as the marginal tax rate goes up. That is fundamental finance. A math equation. Not subject to interpretation.

so then for the 4th time show me one person on earth who agrees that higher taxes produce more investments!!! Its a win win right!!!!

Investing, I make actually investing, like building a business and creating a product, is a gamble. So let's look at it that way.

You got a hundred bucks and you can gamble. If you were taxed one hundred percent you wouldn't bother to show up. At zero, you would probably play. But, at ten percent, would you cash out when you doubled your money? What if it was fifty percent? Would you cash out at the same point? No, you would be more likely to CASH OUT at lower amounts when the tax rate was low because you would have, wait for it, MORE TO LOSE.

See, you won't be in business very long if you worry about how much money you are going to make more than you worry about how much money you could lose. That is way companies are sitting on piles of cash. No demand, and too damn skeered they will LOSE some of that money. In fact, about the only thing those companies are doing with that money now is having big bonfires and burning it via stock certificates to inflate the price of the stock for the executives and share holders. Sucking ever and ever larger amounts into that great economic vacuum machine called the stock market.

 

[Winston]

Dude, the math was already done. They would still turn a profit. You not got a calculator?

yes it comes to $19 billion, enough to bankrupt company and economy!!! Are you a communist?

What, at two thousand hours a year? Do you really thing the average employee works two thousand hours a year. Try it at a thousand and tell me what Walmart's profits were last year.

 

[Winston]

Since when does a company pay taxes on money it invests in it's business?

what??? it doesn't pay taxes on what it invests and it doesn't invest what it pays in taxes. Now do you understand?
do you understand that if you send $1 to Washington they then have the dollar and you don't?

I understand this much. I am a businessman. I have not seen a W2 this century. If I can invest a dollar and get more than a dollar back, I do it. Then I sort out the tax thing. In fact, like most investors, I am more concerned about the return of my dollar than the return on that dollar. Which speaks to that whole inverse relationship between the marginal tax rate and the cost of capital. I am more likely to make a risky investment if the government is willing to take a larger part of that risk. At a fifty percent tax rate the government takes on fifty percent of the loss. But at ten percent the government is only going to give me ten cents on the dollar.

great so the more we raise taxes the more the economy will boom!!! Is there another person on earth who agrees with you? Is this called the communist school of economics???

Yes, if taxes were one hundred percent the economy would grind to a halt. But I doubt government revenues would be spilling over if tax rates were zero. The Laffer curve is called a curve. Perhaps that is over your head as well.

nice try but for 5th time are you going to name the one idiot on earth who agrees with you that the more we raise taxes the more the economy will boom????? you said its fact but apparently its a fact that only you know. can I ask how old you are?

. As I stated here, in my opinion, higher tax rates can lead to more investment. After all, one way a person who owns a business (large or small) can reduce the taxes they pay on profits is to reinvest the profits, which in turn leads to faster economic expansion. Furthermore, the incentive to avoid taxes and reinvest increases as tax rates increase. Of course, at some point, tax rates get high enough to encourage individuals to reinvest even though the “benefits” from more reinvestment, at the margin, are negative. Where that happens, I don’t know, but based on Figure 1, my guess is that it takes a top marginal tax rate above 50%.

How Tax Rates Affect Investment and Consumption - A Look at the Data

 

[EdwardBaiamonte]

That is way companies are sitting on piles of cash.

who cares why??? Its a free country; if people or companies want to sit on cash that is 10000% their right. Do you understand?

Are you a violet liberal who wants to put a gun to their heads to force them not to sit on what they have freely earned in peaceful transactions?

 

[EdwardBaiamonte]

. No demand, and too damn skeered they will LOSE some of that money. .

no demand???? its a $20 trillion economy so people are demanding plenty. Care to rethink.

to damn scared? so are you a violet liberal who wants to put a gun to their heads so they will invest despite being scared to do so on theory you are libnazi who knows best?

 

[EdwardBaiamonte]

if it was me as taxes went up my investment capital would become more precious and so I want a higher IRR not lower. Also the higher the taxes the lower the IRR so the less likely I would be to make an investment.

Your accountant would show you otherwise. And you are confusing the IRR with the after tax return and the end result with the decision making process.

Irr can be computed before or after tax. Sorry to rock your world.

And when you incorporate the marginal tax rate into the equation the IRR required to justify an investment DECLINES as the marginal tax rate goes up. That is fundamental finance. A math equation. Not subject to interpretation.

so then for the 4th time show me one person on earth who agrees that higher taxes produce more investments!!! Its a win win right!!!!

Investing, I make actually investing, like building a business and creating a product, is a gamble. So let's look at it that way.

You got a hundred bucks and you can gamble. If you were taxed one hundred percent you wouldn't bother to show up. At zero, you would probably play. But, at ten percent, would you cash out when you doubled your money? What if it was fifty percent? Would you cash out at the same point? No, you would be more likely to CASH OUT at lower amounts when the tax rate was low because you would have, wait for it, MORE TO LOSE.

See, you won't be in business very long if you worry about how much money you are going to make more than you worry about how much money you could lose. That is way companies are sitting on piles of cash. No demand, and too damn skeered they will LOSE some of that money. In fact, about the only thing those companies are doing with that money now is having big bonfires and burning it via stock certificates to inflate the price of the stock for the executives and share holders. Sucking ever and ever larger amounts into that great economic vacuum machine called the stock market.

so then for the 6th time show me one person on earth who agrees with your utter lunacy that higher taxes produce more private investments!!!

 

[EdwardBaiamonte]

inflate the price of the stock for the executives and share holders.

so you're a libnazi and don't want owners to do what they want with the money they earn?? Let me guess as a typical lib nazi this is one of 10000 interventions against freedom that you want? How did I know that?

 

[EdwardBaiamonte]

Dude, the math was already done. They would still turn a profit. You not got a calculator?

yes it comes to $19 billion, enough to bankrupt company and economy!!! Are you a communist?

What, at two thousand hours a year? Do you really thing the average employee works two thousand hours a year. Try it at a thousand and tell me what Walmart's profits were last year.

I figure 1560 hours per year x 2.3 million =$18 billion. Enough to wipe out company and profits. Its liberal and Stalinist.

 

[Winston]

That is way companies are sitting on piles of cash.

who cares why??? Its a free country; if people or companies want to sit on cash that is 10000% their right. Do you understand?

Are you a violet liberal who wants to put a gun to their heads to force them not to sit on what they have freely earned in peaceful transactions?

LOL, pull it back a notch drama queen. I didn't say anything about forcing anyone to do shit. What I am saying is first, Walmart could afford to give all their hourly employees a five dollar an hour raise. Second, that if they would it would stimulate the economy by generating demand. Third, that five dollar an hour raise is a better use of Walmart's profits than stock buybacks especially in regards to the economy but even in regards to the future "value" of Walmart stock.

And yes, why those companies are sitting on cash is important. One thing is for damn sure, they are not sitting on cash and ignoring investment opportunities because taxes or too high or because regulations are too burdensome.

 

[EdwardBaiamonte]

what??? it doesn't pay taxes on what it invests and it doesn't invest what it pays in taxes. Now do you understand?
do you understand that if you send $1 to Washington they then have the dollar and you don't?

I understand this much. I am a businessman. I have not seen a W2 this century. If I can invest a dollar and get more than a dollar back, I do it. Then I sort out the tax thing. In fact, like most investors, I am more concerned about the return of my dollar than the return on that dollar. Which speaks to that whole inverse relationship between the marginal tax rate and the cost of capital. I am more likely to make a risky investment if the government is willing to take a larger part of that risk. At a fifty percent tax rate the government takes on fifty percent of the loss. But at ten percent the government is only going to give me ten cents on the dollar.

great so the more we raise taxes the more the economy will boom!!! Is there another person on earth who agrees with you? Is this called the communist school of economics???

Yes, if taxes were one hundred percent the economy would grind to a halt. But I doubt government revenues would be spilling over if tax rates were zero. The Laffer curve is called a curve. Perhaps that is over your head as well.

nice try but for 5th time are you going to name the one idiot on earth who agrees with you that the more we raise taxes the more the economy will boom????? you said its fact but apparently its a fact that only you know. can I ask how old you are?

. As I stated here, in my opinion, higher tax rates can lead to more investment. After all, one way a person who owns a business (large or small) can reduce the taxes they pay on profits is to reinvest the profits, which in turn leads to faster economic expansion. Furthermore, the incentive to avoid taxes and reinvest increases as tax rates increase. Of course, at some point, tax rates get high enough to encourage individuals to reinvest even though the “benefits” from more reinvestment, at the margin, are negative. Where that happens, I don’t know, but based on Figure 1, my guess is that it takes a top marginal tax rate above 50%.

How Tax Rates Affect Investment and Consumption - A Look at the Data

dear, the govt could pass a law requiring at gun point that 50% or 100% of profits be invested but it does not do it because conservatives know liberal govt is far too stupid to know how much should be invested. Do you understand?

 

[Winston]

Dude, the math was already done. They would still turn a profit. You not got a calculator?

yes it comes to $19 billion, enough to bankrupt company and economy!!! Are you a communist?

What, at two thousand hours a year? Do you really thing the average employee works two thousand hours a year. Try it at a thousand and tell me what Walmart's profits were last year.

I figure 1560 hours per year x 2.3 million =$18 billion. Enough to wipe out company and profits. Its liberal and Stalinist.

Funny. Walmart's profit last quarter last year was 4.57 billion. Almost exactly an 18 billion dollar a year rate. Not exactly going to bankrupt them.

http://www.nytimes.com/2016/02/19/business/walmart-q4-earnings.html?_r=0

 

[EdwardBaiamonte]

, Walmart could afford to give all their hourly employees a five dollar an hour raise. .

if they could afford it they would do it!! You mean at gunpoint you would decide for them that they can afford it-right?

 

[EdwardBaiamonte]

Second, that if they would it would stimulate the economy by generating demand.

BS of course since money quantity stays same regardless of who spends it