GOP's official report says tax cuts for the rich just don't do much of anything to help the economy.

[Ben Kenobi]

What business are you in?

Well, let's see.

I've ran my own tutoring business for years. I work as a freelance data entry clerk and write on occasion, when I'm not teaching for the private sector.

How about you?

[giblets]

What business are you in?

Don't waste your time talking to that idiot.

[Kidlicious]

Ben, you really should do better than that. All you're doing is spewing political spin, not backed up with reason. When I ask for an explanation you just provide nonsense.

[Ben Kenobi]

Ben, you really should do better than that. All you're doing is spewing political spin, not backed up with reason. When I ask for an explanation you just provide nonsense.

When the student is ready - the master will appear.

[MRT144]

You're not thinking about this correctly. It would be a disincentive against hiring new people--avoid expanding.

Look up your micro econ again

[Jaguar]

HC is right. Also, it's a macro issue, not a micro one. Taxes on profits lower the after-tax risk-adjusted expected nominal rate of return on new business investments. For some investments, those taxes lower the after-tax rate of return enough that it goes below the interest rate at which the firm can borrow.

In a normal economy, the Federal Reserve could respond to this by lowering interest rates. Unfortunately, this option is unavailable because we've been in a liquidity trap for almost four years.

[Kidlicious]

HC is right. Also, it's a macro issue, not a micro one. Taxes on profits lower the after-tax risk-adjusted expected nominal rate of return on new business investments. For some investments, those taxes lower the after-tax rate of return enough that it goes below the interest rate at which the firm can borrow.

In a normal economy, the Federal Reserve could respond to this by lowering interest rates. Unfortunately, this option is unavailable because we've been in a liquidity trap for almost four years.

What do you have to say to the fact that the rate of profit decreased from the end of WWII until the 1980's?

[Jaguar]

Please try to use modern terminology when possible. There's a reason Marxian terms went out of fashion. They're imprecise.

The term usually corresponds to nominal interest rate, though, which clearly increased between 1945 and 1980.

[-Jrabbit]

You're not thinking about this correctly. It would be a disincentive against hiring new people--avoid expanding.

That's much more an academic argument (I won't dignify it by calling it a theory) than an actual fact.
Of course, it is understood that, by "correctly," you mean "like me."

[Hauldren Collider]

It is only "academic" in the sense that you do not know what you are talking about JR.

[MRT144]

HC is right. Also, it's a macro issue, not a micro one. Taxes on profits lower the after-tax risk-adjusted expected nominal rate of return on new business investments. For some investments, those taxes lower the after-tax rate of return enough that it goes below the interest rate at which the firm can borrow.

In a normal economy, the Federal Reserve could respond to this by lowering interest rates. Unfortunately, this option is unavailable because we've been in a liquidity trap for almost four years.

bs, taxes and the theory of the firm can't be separated.

[Kidlicious]

Please try to use modern terminology when possible. There's a reason Marxian terms went out of fashion. They're imprecise.

"In finance, rate of return (ROR), also known as return on investment (ROI), rate of profit or sometimes just return, is the ratio of money gained or lost (whether realized or unrealized) on an investment relative to the amount of money invested."
-wiki

Maybe you don't like the term because it proves you wrong. What exactly is the problem with (profit/capital invested)? Your claim is that taxes reduce rate of profit and thus reduce economic growth, is it not? Rate of profit is what has decreased from 45 to 80. Yet there was much economic growth during that period. If the rate of profit decreases and we still have economic growth then how can you say that taxes cause economic contraction by reducing the rate of profit?

The term usually corresponds to nominal interest rate, though,

Huh?!

which clearly increased between 1945 and 1980.

That's irrelevant. edit: actually it's telling that the rate of profit decreased and the nominal interest rate increased, yet we STILL had economic growth for almost 40 years.

[Kuciwalker]

econometrics is a worthless subject and econometrics applied to macroeconomic data isn't just worthless crap, it's offensively stupid

this report should have been "unpublished" regardless of its conclusions

why the **** is there an ad next to my post

[Kidlicious]

Of course if the data went your way you would be praising econometrics.

[Kuciwalker]

nope. they should all be shot. or at least fired.