Sunday, February 24, 2019

Amazon and the RPOS spat

Corporate wealth fare is what was being said of NY's tax incentives to lure Bezos. I am not sure, but I don't see it as the same as when Professional Sports Team threatens to leave a city unless they get a new stadium paid by taxpayers through some bond measure.
Amazon is creating year-round jobs that ripple throughout the city into the state's coffers from the increased tax revenue. Tax payers have been leaving New York. The brunt of the Tax Reform law probably hasn't been felt yet, but a dollar doesn't go as far in New York as it does in Texas or Florida.
I'm not sure what sort of jobs are being created by Amazon... or were going to be made, but to say NY could divert the "taxes" it was not taking in from Amazon and use those dollars for existing New Yorkers is plain bizarre.
I have heard using analogies is a dumb way to make a point, but there was a time when I got a credit card offer that said I would get a free Dell desktop computer valued at $600 if I accepted the card and spent so much...
I forget the rest of details, but the idea was that the charges on the card wouldn't be paid back in-full thus allowing the credit card company earn back the cost of "free" computer in the form of high interest charges and late fees.
The idea seems insane to me for I don't pay federal taxes and I make more in cashback from credit cards than they get from in me in terms of interest or fees. 
Why the credit card didn't just give out the computers without strings attached is the same reason NY doesn't give away tax revenue it won't recoup.
Bad analogy... cause there's no money coming. Tax breaks aren't stealing from the poor if those receiving the tax breaks are introducing and spending new money that flows. The taxes not being collected are more than offset by the taxes collected by the new money being spent. It's not the same as trickle down economics for that's when existing taxes are cut disproportionately benefiting upper tax bracket types with the hope they'll be more free with their money rather than sitting on it and collecting interest.
I'm not a fan of taxes. I avoid paying taxes by not making money, much like the mythical Nero Wolfe who was taxed at 90% after he made so much and didn't feel his detective work was worthwhile at the 10% return.
I'm a fan of THE FAIRTAX. It's probably too complicated to be implemented, but the calculus of eliminating all embedded taxes and replacing it by the taxing the end product seems brilliant.

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