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Old 09-03-2019, 12:37 PM
Wrenching Spanners is offline
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Join Date: Jun 2011
Location: London
Posts: 580
Quote:
Originally Posted by GIGObuster View Post
Too bad that to make this silly point you are ignoring why he is singled out, he and his corporation paid little in taxes last year.

A wealth tax is what happens when one notices that there is an abuse of the law so as not to pay taxes, or in simpler words: "This is why we can't have nice things".
Bezos isn't singled out for Amazon's low taxes in either of your cites. But since you'd like to throw that into the conversation here's a Forbes take on Amazon's federal income tax breaks:

Quote:
There are three main drivers of Amazon's tax breaks:

Investment in Research & Development. Amazon invests heavily in research and development and therefore benefits from the tax credit. In 2017, as Recode stated, Amazon topped the list of U.S. companies in R&D spend, at $22.6 billion. The next closest was Alphabet at $16.6 billion. Many of Amazon's innovations have been birthed from this investment.

Investment in Property, Plant, and Equipment. Amazon’s investment in property, plant, and equipment also makes it eligible for tax credits. Cities can benefit from Amazon's investment in real estate and job creation (benefits New York City could have enjoyed). Amazon's PPE expenditure has steadily increased over the last five years, netting to approximately $60 billion as of the end of last year.

Employee Stock Compensation. A move away from cash compensation to stock-based compensation for employees is the third driver of its tax breaks. Tax deductions increase as the stock increases. While this can certainly create adverse incentives, it is important to assess the benefits it creates relative to the cost. While such a tax policy can introduce misaligned management incentives, it also generates incentives for management to drive the best possible return for investors.
https://www.forbes.com/sites/stephan.../#dafd68c54d5a

So a rich guy directs his company to invest heavily and provide employees with stock incentives which they benefit from when the stock price increases, and the company becomes more valuable as a result. This is a good thing. It's how capitalism is supposed to work.

As to my silly little point, what is the liberal position on taxing unrealised wealth? Are you in favour of it, or against it?

Last edited by Wrenching Spanners; 09-03-2019 at 12:40 PM.