Tax Reform Thread

[Hauldren Collider]

Yeah, it also gives us bull**** like dental insurance. It's not insurance, it's a tax dodge. And I've read columnists that argue that the tax deduction for mortgages caused the housing bubble and subsequently subprime mortgage crisis.

[Jon Miller]

Well, honestly, on the dental insurance side, we do have better teeth than most of the world (despite our sweet tooth).

I don't think the way our health insurance system is set up saves us (the people getting health care) any money though. Rather, our health insurance costs more and does less than any other country on earth. In most cases, does less and costs far more.

JM

[Hauldren Collider]

My point was that dental insurance isn't insurance.

[Jon Miller]

Oh, yeah, it is mostly or entirely not.

JM

[Imran Siddiqui]

How exactly is it not?

[Hauldren Collider]

Visits to the dentist aren't financial risk.

[Imran Siddiqui]

Depends on what you go for. Root canals, etc, can cost a ton of money.

[Hauldren Collider]

That could be covered under a regular emergency healthcare insurance plan. I'm talking about checkups.

[Jon Miller]

I know people who go years without getting dental work done due to cost (and are on pain releivers/etc at all times). Basically, accidents due happen which necessitate dental work (my mom fell in a tub once) (we had insurance).

But yeah, the majority of what we do ((bi)yearly visits, or even every couple of years) shouldn't really be an insurance issue.

JM

[Imran Siddiqui]

That could be covered under a regular emergency healthcare insurance plan. I'm talking about checkups.

Since when are root canals covered by regular health insurance?

[Kidlicious]

wut

Is this a new low for Kid or have I just not been around here long enough?

http://finance.mapsofworld.com/savings/factors/

The various factors affecting savings decision play a major role in influencing the savings plans of individuals. There are a number of reasons that influence the savings decisions both at the microeconomic and macroeconomic level. The various measures that work on the savings decisions try to explain the tendency of people to consume or save.


Opportunity cost is one of the major factors affecting savings decision. Opportunity cost refers to the alternative cost that should be waived while consuming certain product or service. In other words it can also be said that the opportunity cost is actually a benefit that is enjoyed by the purchaser over certain alternative action. Generally the opportunity cost is expressed as the relative price of one choice to another. The concept of opportunity cost affects the decision of savings of an individual gravely. Before going for purchasing a good or service the individual thinks about the opportunity cost of that particular purchase and hence decides on saving.

Another important factor that affects the savings decision is the theory of diminishing returns. Also known as the diminishing marginal returns, the diminishing return says that after a certain point, the additional variable input unit does not yield the same but rather yields less additional output. In other way it can also be said that creating a single unit actually costs more variable inputs. This theory affects the decision making concept of individual and says that after a certain point the consumer prefers to save rather than going for more consumption.

Economies of scale refers to a process of production where, if there is an increase in the scale of the firm, the long run average cost is decreased for each unit. The two of the most popular ways of achieving the economies of scale are - low fixed cost and decreasing marginal cost and constant marginal cost. This 'economies of scale' theory influences a firm's decision to save or invest.

You call people stupid out of your own ignorance. Tax policy is not a significant factor.

[Kidlicious]

They pay an equal percentage of their consumption. Savings are deferred consumption. Eventually the rich person or their descendants will pay the tax.

Liar

[Hauldren Collider]

Holy ****, and I thought Kid had hit a local minimum in his last post (to use the calculus lingo).

[giblets]

Liar

Could you explain how savings aren't deferred consumption?

I guess you could say that in theory, they could save it for eternity. But that's hardly a bad thing from society's POV because then there's just more money in the banks for people to borrow.

[Kidlicious]

Could you explain how savings aren't deferred consumption?

Don't twist things around. They are deferred consumption when people save for specific reasons like college funds or retirement. However rich people tend to save with no intention of ever spending the money. Now, is that explaination too difficult for you to figure out by yourself. Did you really need someone to explain that to you?

Also is the issue of time value of money. Do you need explaination?

I guess you could say that in theory, they could save it for eternity. But that's hardly a bad thing from society's POV because then there's just more money in the banks for people to borrow.

Saving isn't always better, and people don't always need us to give them money to do so.