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

[Winston]

I understand that supply side economics doesn't work in today's economy.

here are your ABC's we got from the stone age to here because Republicans supplied new inventions. Now you know how an economy and wages grow. Do you understand?

Yeah, I understand what expands the frontier curve. And about growth, how has that been working out for you lately? And more to the point at hand, do stock buybacks encourage or discourage growth?

 

[EdwardBaiamonte]

And about growth, how has that been working out for you lately?

dear its not working out because we had a socialist president!!!!!!!!!!!!!!!! Did you know Trump just got elected but has not taken office yet?????

 

[EdwardBaiamonte]

do stock buybacks encourage or discourage growth?

neither but who cares?? Do you have any idea what your subject is?? Stock buy backs??

 

[EdwardBaiamonte]

Yeah, I understand what expands the frontier curve.

does that in any way relate to our subject????? Do you know why you introduced it?

 

[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? Low taxes do not encourage investment, they encourage speculation. Matter of fact, since the weighted average cost of capital is inversely related to the marginal tax rate, higher tax rates actually encourage more investments as the IRR required to justify an investment decline. But I am quite sure that is just way over your head.

 

[EdwardBaiamonte]

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?

 

[EdwardBaiamonte]

higher tax rates actually encourage more investments.

who knew. This is a liberal who really has it figured out!! By the way, is there even one other person on earth who agrees. Can you tell me who it is?

 

[Winston]

do stock buybacks encourage or discourage growth?

neither but who cares?? Do you have any idea what your subject is?? Stock buy backs??

Sigh.

Currently the subject is Walmart giving five dollar an hour raises to all her employees. Since they spend almost as much money as would be required buying back stock I introduced that subject and have made the contention that spending the stock buy back money on employee wages would stimulate the economy.

And the answer to the question, are stock buybacks good or bad for the economy is not "neither", it is BAD. I linked to an article demonstrating as much. In fact, economists believe stock buybacks are draining the economy to the tune of almost a full point of GDP. Pretty hard to get economic growth when you start out from behind the starting line.

 

[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.

 

[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.

 

[EdwardBaiamonte]

spending the stock buy back money on employee wages would stimulate the economy.

.[/QUOTE]

actually the opposite since it would bankrupt Walmart. But even if it didn't welfare handouts stimulate demand a little but not supply. And you have already learned how we got from the stone age to here: through Republican supplied inventions. This is how you raise wages. Now do you understand?

 

[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.

 

[EdwardBaiamonte]

it is BAD..

if so tell us why owners taking their profit is bad for the economy??

 

[EdwardBaiamonte]

it is BAD..

if so tell us why owners taking their profit is bad for the economy?? if there are no owners then your communist friends have to become the owners. Is that what you really want??

 

[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.

 

[EdwardBaiamonte]

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???

 

[Winston]

spending the stock buy back money on employee wages would stimulate the economy.

.

actually the opposite since it would bankrupt Walmart. But even if it didn't welfare handouts stimulate demand a little but not supply. And you have already learned how we got from the stone age to here: through Republican supplied inventions. This is how you raise wages. Now do you understand?[/QUOTE]

Are you not paying attention? From the get go we determined that there was enough profit within Walmart to pay that five dollar raise. I pointed out that they spend over half the amount required on stock buybacks.

To the Republican supplied inventions, honestly, I ignored it because it is absolutely stupid. To be frank, most of the great inventors, like Henry Ford, believed in Georgism.

 

[ScienceRocks]

I think it should come out of the greedy bastards the wantons bank account.

 

[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.

 

[EdwardBaiamonte]

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