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User Info Beaker! (Podcast); entered at 2020-01-11 23:11:52
Amused
Posts: 503
Registered: 2019-04-22
I kinda understand Apple's scam with the stock buybacks, they were also putting tens of billions away but they were still floating their buybacks by borrowing, but in their case, it was because lots of the cash was from overseas income and the tax rates were so high that to repatriate the income, pay the taxes and then spend would have costed them more than to borrow at a lower rate, given their income, the difference still made it worth it to them to borrow, but that was before the recent Tax Overhaul, now I don't think that justification the corporate overlords spin is viable. We gave them a tax break and repatriation break.

The corruption is systemic and is going to lead to Revolution.

Case in point: I've bitched for years that we should get rid of Capital Gains and treat all income as income and stop this 'unearned' 'investment' income at a lower rate because it is fundamentally unfair to the worker.

I invested my time, I took risk going to school and building my business. My risk and investment is worth just as much as some ****ing day trader or corporate overlord.

But guys like Larry Ellison can game it by getting awarded options, then borrowing against those options at an insanely low rate, hold them for three years, live off the money he borrowed and skate by with a lower tax rate than the poor schlub patching up gunshot wounds in the ghetto.

What does Ellison do? He repeats the same scam year after year, so his effective tax rate is always lower, even though he's still effectively paying himself a lower salary. His Social Security? Hah, if he's not making real 'income' what does he pay? His Medicare? Again what does he end up paying when he finally divests those shares at the end of the three years?

It is fundamentally unfair. That doctor took and takes risk both with his education and exposure to disease, the engineer who went to school and is out in the marketplace, he takes risk daily. A hell of a lot more risk than the 'savy investor' corporate overlord with his golden parachute who ends up paying an effective tax rate of 15%, next to nothing in Social Security and Medicare.

It wouldn't be that hard to fix, we just treat all income as income, it doesn't matter where it is from, you earn a dollar, it's taxed at whatever the rate it, you pay Medicare and Social Security on it just like any other schlub.
2020-01-11 23:11:52