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The LVT Landscape #1: Movement Across the U.S.

Progress and Poverty • 1270 implied HN points • 03 Mar 25
🇺🇸 U.S. Politics Tax policy Legislation Urban planning Public Policy
  1. Land value tax (LVT) is becoming popular in various states in the U.S. as a way to manage property taxes more fairly.
  2. Cities like Baltimore and Spokane are making efforts to adopt LVT to deal with issues like vacant properties and encourage development.
  3. Legislation supporting LVT is being introduced and discussed in places like Minnesota and New York, indicating growing interest in this tax reform.

DOGE In the States

Points And Figures • 879 implied HN points • 18 Feb 25
🇺🇸 U.S. Politics Entrepreneurship Tax policy Venture Capital
  1. Many government programs aiming to help entrepreneurs are seen as wasteful and do not deliver real results. It's often just a way to create jobs for government employees.
  2. Entrepreneurial ecosystems work best when driven by the private sector rather than government involvement. Government interference tends to complicate matters and can limit growth.
  3. Accountability in the private sector is focused on solving customer problems efficiently, while government often prioritizes expanding control and influence, resulting in wasted resources.

Why Tim Walz Received an 'F' in Cato's Fiscal Report Card, Ranking Dead Last of 50 Governors

The Take (by Jon Miltimore) • 356 implied HN points • 21 Oct 24
🇺🇸 U.S. Politics Governance Tax policy Fiscal Responsibility
  1. Tim Walz received an 'F' for poor fiscal management, ranking last among all US governors. His spending increased substantially while taxes were raised significantly.
  2. Despite a budget surplus of $18 billion, Walz overspent and added more taxes, which has led to predictions of future budget deficits for Minnesota.
  3. High-income earners are leaving Minnesota due to these fiscal policies, worsening the state's economy and reducing tax revenue as people seek better conditions in states with lower taxes.

Tax Breaks for the Rich

Fake Noûs • 572 implied HN points • 25 Jan 25
🇺🇸 U.S. Politics Tax policy Income Inequality Wealth Distribution Government spending Political theory
  1. The current tax system in the U.S. is very progressive, meaning the rich pay a larger percentage of their income in taxes, but some believe it's still not fair for the wealthy.
  2. There are different arguments about how taxes should be distributed, like paying based on ability, benefits received, or costs incurred, but many don't support the idea of higher tax rates for the rich.
  3. Some argue that high taxes on the rich hurt economic growth by discouraging investment and productivity, suggesting that everyone, including the middle class, should contribute to taxes more fairly.

The Rich and the Cheap

Bet On It • 392 implied HN points • 29 Jan 25
🇺🇸 U.S. Politics Tax policy Regulation Wealth Inequality Behavioral Economics Political theory
  1. High taxes or regulations on wealthy people might not work out as planned. Just because the rich can afford it, doesn't mean they will stick around to pay it.
  2. Many wealthy individuals are also frugal. When taxed more, they might choose to earn less or stop certain activities to avoid those costs.
  3. Large companies may appear to afford extra taxes and regulations, but they can choose to cut back on what they do instead. This means the burden of such policies can end up hurting regular folks more than the rich.
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Norway’s Wealth Tax Is Backfiring. Are Americans Paying Attention?

The Take (by Jon Miltimore) • 277 implied HN points • 11 Oct 24
🇺🇸 U.S. Politics Tax policy Economic Impact Wealth Inequality Regulatory issues
  1. Norway's increased wealth tax led to many rich people leaving the country. This departure caused the government to lose significant income.
  2. The wealth tax was supposed to bring in more money, but it ended up costing the government much more than expected. The wealthy took their money elsewhere, leaving a big gap in revenue.
  3. Similar wealth tax proposals are being considered in the U.S., but if they mirror Norway's experience, they could drive wealthy individuals out of the country too.

The least we can do

Popular Information • 9139 implied HN points • 24 Jan 24
🇺🇸 U.S. Politics Tax policy Social programs Legislation Bipartisanship Opinion Pieces
  1. The Child Tax Credit was expanded in 2021, leading to a significant drop in child poverty.
  2. There are efforts to extend and expand the Child Tax Credit again, but face opposition from corporate lobbyists.
  3. The proposed expansion of the Child Tax Credit is tied to extensions of business tax cuts, which are critiqued for benefiting profitable companies.

Trump Should Finish What He Started

Cremieux Recueil • 658 implied HN points • 26 Nov 24
🇺🇸 U.S. Politics Tax policy Bipartisan Issues Political Advocacy
  1. A Destination-Based Cash Flow Tax (DBCFT) can simplify the tax system by making it easier to track consumption rather than complicated income measurements. This means businesses won't need to navigate through complex deductions and depreciation rules.
  2. Switching to a consumption tax can help encourage saving and investment, making the economy grow better over time. It treats current and future consumption equally, which can make people want to invest more.
  3. Taxes influence how businesses choose to finance themselves, often making debt more attractive than equity. A neutral tax approach would allow businesses to pick the best financing method without extra costs from tax rules.

Physiocratic Platform: Transaction Tax

Contemplations on the Tree of Woe • 1266 implied HN points • 11 Jan 25
🇺🇸 U.S. Politics Tax policy Government Economic Theory Legislation
  1. Transaction taxes are small fees added to all money exchanges, helping to fund government services. They can be applied to everything from buying groceries to trading stocks.
  2. A broad transaction tax could simplify the tax system by ensuring everyone contributes, especially from financial activities that often go untaxed. It aims to promote fairness among all economic participants.
  3. The proposed tax system would lower the overall tax burden for most people while ensuring that the rich and businesses pay their fair share, potentially reducing unfairness in current tax practices.

Tax Policy: Breaking the Impasse

Comment is Freed • 93 implied HN points • 16 Jan 25
🇺🇸 U.S. Politics Tax policy Political Reform Government Structure Policy Analysis
  1. Tax reform in the UK is really hard because changes lead to public outrage, making it tough for politicians to make sensible decisions. Politicians often focus on how changes will be viewed rather than on what makes sense.
  2. The current tax system is too complicated and has become a way to solve a variety of issues, leading to confusion and resistance. There needs to be a clearer and simpler approach to tax policy that takes all aspects into account.
  3. Creating a separate office for tax policy could help develop better ideas and solutions without getting caught up in daily politics. This could support governments in making more informed decisions about tax reform.

The Physiocratic Platform: Taxation

Contemplations on the Tree of Woe • 1560 implied HN points • 11 Oct 24
🇺🇸 U.S. Politics Tax policy Federal Budget Government reform Economic Theory Political Philosophy
  1. There are many types of taxes in the U.S., which can make the system very confusing. The government collects money through taxes like income tax, sales tax, and property tax to fund its activities.
  2. A proposed way of understanding taxes is to link them directly to the services the government provides. For example, taxes could cover the cost of maintaining order and protecting citizens.
  3. One suggested tax is a poll tax, which would be paid by everyone, regardless of income. This tax could help fund voting processes and personal protection, though it might be seen as unfair for low-income households.

The Physiocratic Platform: Land Tax

Contemplations on the Tree of Woe • 1108 implied HN points • 27 Oct 24
🇺🇸 U.S. Politics Tax policy Government Structure Economic Theory Land use Political Reform
  1. A land value tax (LVT) is different from a property tax because it only taxes the value of the land itself, not any buildings on it. This means it encourages landowners to use their land efficiently.
  2. Implementing a 2% LVT could raise a lot of money for government services while avoiding economic issues that other taxes might cause. It's seen as a less harmful option for funding government needs.
  3. There are ways to protect homeowners from being forced out of their homes due to rising land taxes, like exemptions for primary residences or allowing tax deferrals until the property is sold.

The Physiocratic Platform: Tariffs

Contemplations on the Tree of Woe • 1153 implied HN points • 19 Oct 24
🇺🇸 U.S. Politics Tax policy Economics Trade policy National Security
  1. Tariffs can help raise money for government services, especially for defense and border security. By applying a uniform tariff on imported goods, it aims to make the tax system fairer for everyone involved.
  2. Historically, high tariffs were essential for the growth of the U.S. economy and protecting local industries. Examples from the past show that many countries successfully used tariffs to develop their manufacturing sectors.
  3. While tariffs might increase the cost of living, they can also boost domestic production and potentially lead to higher wages. The idea is that by protecting local jobs, the overall economy can become stronger.

On the Election

Philip’s Newsletter • 78 implied HN points • 06 Nov 24
🇺🇸 U.S. Politics Political Economy Inequality Tax policy Elections Social movements
  1. Inequality is growing because free markets and low taxes let wealth concentrate in a few hands. Over time, this leads to more people feeling left out and unhappy.
  2. Different countries face a tough choice between low taxes to drive growth or higher taxes to support fairness. These choices impact how people feel about their economic opportunities.
  3. Creating strong local communities where people support each other can help address the issues caused by inequality. Togetherness and compassion will be key to moving forward.

The Wealth Transfer Nobody Talks About

Ijtihad • 57 implied HN points • 10 Nov 24
🇺🇸 U.S. Politics Military Spending Wealth Inequality Tax policy Foreign Aid Media Critique
  1. The U.S. military spending largely benefits the wealthy, as tax money is used to fund arms sales to other countries.
  2. Around $113 billion has been spent on military assistance to Ukraine and Israel over the past decade, taking funds from public resources.
  3. Mainstream media often ignore this issue, which affects many Americans, likely due to their ties to rich donors.

Philosophical economics: The golden calf of business and finance

Klement on Investing • 5 implied HN points • 23 Jan 25
💰 Finance Tax policy Economic Growth Fiscal policy Investment Strategies Corporate Finance
  1. Cutting taxes isn't always the best option for improving the economy. Sometimes, raising taxes can actually help fund important things like infrastructure and education.
  2. There's a lot of disagreement about whether low taxes lead to higher profits and growth. In reality, many developed countries show no clear link between tax rates and economic growth.
  3. It's important to consider how tax money is spent. If governments invest in useful projects, they can create more value than just cutting taxes.

December 11, 2024

Letters from an American • 16 implied HN points • 12 Dec 24
🇺🇸 U.S. Politics Economic Policy Political speech Tax policy Government Regulation Employment
  1. Biden contrasted his economic approach with Trump's supply-side economics, highlighting the success of creating over 16 million jobs during his term. He believes growth should come from the middle and bottom of the economy.
  2. He emphasized that the previous supply-side policies mostly benefited the wealthy and left the middle class struggling, suggesting that tax cuts primarily helped the rich while public investment was cut.
  3. Biden warned that if Trump reinstates old policies, it could harm economic progress made in recent years, urging voters to recognize the positive effects of his administration's investments in the American people.

The Republic of Walmart

Diane Francis • 619 implied HN points • 26 Apr 21
🇺🇸 U.S. Politics Tax policy Corporate ethics Economic Justice Government Regulation Wealth Inequality
  1. Big corporations in America often find ways to avoid paying taxes, leaving regular individuals to pay more. This creates an unfair burden on the average taxpayer.
  2. Janet Yellen is working on a plan to make sure that these big companies pay at least a minimum tax, no matter where they operate. This could help level the playing field for everyone.
  3. Tax havens and loopholes allow companies to dodge paying their fair share, which hurts the economy and public services. Reforming these systems is important for financial fairness.

Kishida May Raise Corporate Taxes, Part II

Japan Economy Watch • 139 implied HN points • 30 Nov 22
🌍 World Politics Tax policy Government spending Defense Public Opinion Economic Analysis
  1. The Kishida administration is considering raising corporate taxes to double defense spending, which could impact pro-entrepreneur tax breaks.
  2. There is uncertainty around how different government entities, like METI and the Prime Minister's Office, will negotiate on tax policies amidst concerns and objectives.
  3. Japanese corporations have a significant surplus in cash and securities, leading to questions about the necessity and use of low taxes and potential changes in government deficits.

Should we tax realized gains?

The Pursuit of Happiness • 1 HN point • 03 Sep 24
💰 Finance Tax policy Economic Theory Investment Wealth Distribution
  1. The tax system should focus on consumption instead of income. Taxing what people spend rather than what they earn could simplify things.
  2. A consumption tax could be fairer and encourage saving. It would tax money used for living expenses while allowing people to keep their investments untouched.
  3. Real-world issues with a consumption tax should be dealt with through thought-out adjustments. Instead of going back to an income tax when problems arise, we should refine the consumption tax system.

Subsidies, External Costs, and Deadweight Loss

Knowledge Problem • 39 implied HN points • 27 Jul 23
💼 Business Energy Tax policy Market Dynamics Subsidies Political Economy
  1. Understanding economic analyses of power markets is crucial for applied economics.
  2. Federal subsidies for wind and solar impact wholesale power markets by creating inefficiencies and distorting outcomes.
  3. Tax credits like the PTC/ITC are costly ways to encourage renewable energy generation, and a carbon tax might be more efficient.

Abolish the SALT Deduction

California Thoughts • 19 implied HN points • 12 Feb 23
🇺🇸 U.S. Politics Taxation Wealth Inequality Government spending Tax policy
  1. Repealing or increasing the cap on the SALT deduction would benefit the richest Americans and increase inequality.
  2. Factors like housing costs influence migration more than taxes, so removing the SALT deduction cap may not lead to as much migration as expected.
  3. It is suggested to abolish the SALT deduction and most other itemized deductions to prioritize spending on anti-poverty measures.

The Billionaire Tax: The Worst Tax Idea Ever?

Musings on Markets • 19 implied HN points • 25 Oct 21
🇺🇸 U.S. Politics Tax policy Wealth Inequality Legislation Political Economy Economic Justice
  1. The billionaire tax targets a very small number of rich people, but taxing such a small group can lead to unpredictable results and lower revenue. It's better to have broader taxes that apply to more people.
  2. This tax includes taxing unrealized capital gains, which means taxing increases in asset value that people haven't actually sold for cash. This creates challenges, as people need cash to pay taxes even if they haven't sold anything.
  3. The new tax may inadvertently affect other areas, like estate taxes, because it changes how asset values are assessed. This could lead to less tax revenue in the future instead of more.

Tax policy

Musings on Markets • 0 implied HN points • 29 Jan 11
💰 Finance Tax policy Economic Analysis Investment strategy Debt Management Tax policy Economic Policy Financial regulation
  1. The average U.S. company pays about 29% in taxes on its taxable income, which is higher than many companies in other countries.
  2. U.S. companies experience much more variation in tax rates due to a complicated tax code, which can lead to unequal tax burdens.
  3. Investment and borrowing decisions should focus on economics rather than the tax code, but simplifying taxes might require sectors to shift their tax responsibilities.

The Buffett Plan: An apt name for a sanctimonious, hypocritical and superficial proposal

Musings on Markets • 0 implied HN points • 22 Sep 11
🇺🇸 U.S. Politics Tax policy Economic issues Public Opinion Political critique
  1. The Buffett tax plan seems noble, but it may really just be a way to make millionaires feel good about paying taxes. It's suggesting the wealthy can afford more taxes, but the details aren't clear.
  2. There are accusations of hypocrisy towards Buffett because he talks about fairness while his company's structure doesn't always match that. Some believe the idea that millionaires dodge taxes is oversimplified.
  3. The tax plan lacks important specifics, which makes it hard to understand. Critics say it doesn't really solve tax issues, and may even complicate the tax system further.

Tax Reform, 2017: Promise of Plenty or Poisoned Chalice?

Musings on Markets • 0 implied HN points • 06 Oct 17
🇺🇸 U.S. Politics Tax policy Economic Growth Political Debate Fiscal Responsibility
  1. Tax reform often promises to make the system fairer and simpler, but it usually ends up being more complex and less fair.
  2. Changes in tax laws can impact a company's cash flows, cost of capital, and growth potential in different ways depending on their financial structure.
  3. Not all companies benefit equally from tax reforms; those with high effective tax rates and low debt tend to gain, while companies with low tax rates and high debt may struggle.

January 2018 Data Update 3: Taxing Questions on Value

Musings on Markets • 0 implied HN points • 12 Jan 18
💰 Finance Tax policy Corporate Finance Economic Impact Investment strategy Market Analysis
  1. The 2017 Tax Reform lowered the corporate tax rate significantly from 35% to 21%, affecting how much companies pay in taxes.
  2. Changes to how foreign income is taxed allow companies to bring money back to the US more easily, which can impact growth and investment.
  3. The tax reform creates winners and losers among sectors, benefiting those with high taxes and physical assets, while hurting those with low taxes and high debt.

January 2018 Data Update 8: Debt and Taxes

Musings on Markets • 0 implied HN points • 29 Jan 18
💰 Finance Debt Management Tax policy Capital Structure Corporate Finance Investment Strategies
  1. The U.S. tax code has favored debt financing, giving businesses tax advantages for taking on debt rather than using equity. This has encouraged many companies to load up on debt for growth.
  2. Recent tax reforms have reduced the benefits associated with debt, leading companies to rethink how much debt they carry. This could lower overall borrowing and help stabilize businesses.
  3. As companies adjust to these new tax rules, we may see a trend of firms paying down debt and reconsidering their capital structures, which could lead to less volatility in their financial performance.

Flattened

Matt’s Five Points • 0 implied HN points • 25 Oct 11
🇺🇸 U.S. Politics Tax policy Political theory Government reform Taxation Public Opinion
  1. Flat tax proposals often benefit the rich and hurt the middle class, making them unpopular and unlikely to pass.
  2. Simplicity in taxes doesn't only come from a flat tax; current tax systems can also be simplified without losing their structure.
  3. A progressive tax with fewer brackets and no deductions could be as simple as a flat tax and might be more widely accepted.

Making Payroll

Matt’s Five Points • 0 implied HN points • 09 Dec 11
🇺🇸 U.S. Politics Tax policy Social Security Political Dynamics Legislation Economic Policy
  1. The payroll tax cut should stay focused on helping the American people, without getting mixed up in other political issues. If lawmakers complicate it too much, it might not go through.
  2. It’s surprising to see Democrats supporting payroll tax cuts now. In the past, they would have been concerned that it could hurt Social Security, but opinions seem to be changing.
  3. Bringing the payroll tax back to its old rates is unlikely because many people depend on it as their only federal tax. Raising it again could feel like a big burden for those who have the least.

Wealth distribution and feedback loops

Space chimp life • 0 implied HN points • 24 Jan 24
🇺🇸 U.S. Politics Wealth Distribution Economic Theory Tax policy Social justice Incentives
  1. Wealth distribution behaves like a feedback loop, where the rich can continue to get richer without sufficient checks. This happens when there's less competition or enforcement against hoarding wealth.
  2. Currently, wealth is distributed in an exponential way, meaning a few people have a lot while most have very little. This leads to an unstable system that might keep expanding the income gap.
  3. To fix the growing wealth gap, we need to introduce ways to balance the system, like better policies or incentives, to help distribute resources more fairly.

The Debt Crisis

America in Crisis • 0 implied HN points • 15 Jun 23
💰 Finance Debt crisis Inflation Economic Growth Tax policy
  1. The debt crisis in the West is seen as a necessary and inevitable event that will lead to major global restructuring.
  2. The rise of speculative and Ponzi finance units in the economy increases the likelihood of a financial crisis, as seen in historical examples like the 2008 Great Recession.
  3. To move towards a more stable economic future, a shift towards stakeholder capitalism culture, high taxes on the wealthy, and internal financing mechanisms like QE may be necessary.

Abolish the Income Tax

The Oasis • 0 implied HN points • 03 Feb 25
🇺🇸 U.S. Politics Tax policy Political History Government Structure Economic Theory Public Opinion
  1. Some people believe that income tax is a way to control the population and discourage hard work. They feel that the more you earn, the more you pay, which can be unfair.
  2. The history of income tax in the U.S. shows that it has changed a lot over time, especially during wars. Many believe that it was introduced to help fund wars, not necessarily to support the people.
  3. There are ideas about completely getting rid of the income tax and going back to a system before it was established. Some see this as a chance to rethink how taxes work and what they are used for.