One of the participants in the discussion is, Dr John Waits, who with his colleagues and staff at Centreville Clinic Staff, are doing their best to help their community afford their healthcare.
Dr Waits struggles valiantly in the discussion to avoid using the terms profit and subsidy. This is a mistake in my opinion, while you can talk about healthcare efficiencies, people need to hear that large hospital groups are for profit, yes even the not-for-profit ones. People need to understand that rural hospitals are not affordable without subsidy. Equally, urban communities need to understand that without rural communities, we have an entirely different set of problems.
Subsidy isn’t a bad word, nor is tax that ultimately is used to pay for it. You can either levy tax at a state level or at the federal level, preferably on big hospital groups and medical providers revenue(not profit). You can then use that tax money to subsidise rural healthcare. Or you can use general federal taxation, and use the additional money to fund a medicaid hospitals in rural community cities.
Struggling along with no real honesty, and without confronting the elephant in the room, will just mean more rural hospitals closing, leading the to further decline of rural communities and the increased pressure on cities.
This is a big deal, companies that buyback their stock, are reducing the number of shares available on the market. That generally means the share price goes up. Share prices are often one of the main ways executives are measured, their bonuses are usually dependant on the share price. Also, because the price of each share goes up, it makes it harder for lower and middle class people to get in on the action.
buying your own shares is like eating your own young, a glorified share manipulation gamble
The other reason share buybacks are import to watch, is they effectively use the companies cash to “eat themselves”. That cash is then no longer available for Capital investment, new building, equipment and other necessary expansion expenditure. Citigroup reports that companies buying back their own stock, spent more money doing that, than at any time since 2008.
Home Depot announced a $15-billion buyback in February, as a way to artificially hedge their share price, after they announced they’d miss expectation on revenue. Cynical share price manipulation. I have no idea if they used repatriated tax money, but if they miss earnings again this year, the share price will drop. Of course the executives and board will be ok, they’ll have sold their shares at the newly inflated share price, which is down on it’s 2018 high(212.39), but not nearly as low as it would have been if they’d not bought their own shares.
Next time a big business closes an office near you, and jobs are lost, don’t take their reason at face value. When did they last do a stock buyback, and how much cash was repatriated under the Trump/GOP tax break for 2018?
n 2017, the real median household income in the U.S. was $61,372, which is roughly what two earners with full-time jobs making $15 an hour would make.
I remain totally confused about class as a term to classify people in America. This article is a prime example. While overall this is good news, if $15-per hour helps the middle class, how little do you have to earn to be working class? And why is that term never used?
As far as I’m aware the amazon deal doesn’t include health insurance, which effectively means before taxes, you’ll have to work for nearly 1-week in 4 just to pay for an individual plan, for a family plan, you’ll be working for just over two weeks every month just to pay your health insurance premiums. Then there’s food, rent, transportation etc. and so who knows where you are going to find the average $4,533 deductibles if you do get sick. Rather than working class, you are the working poor.
If two people have to work for a couple to survive they are working class. Telling them they are “Middle class” if they earn more than $22 is just a great example of gaslighting. To be middle class, surely it means when one of you can chose not to work.
As the GOP push through their tax bill, without any transparency, one of the big ticket items is corporate tax breaks.
My opinion is the government are really wasting their time, and our money giving tax breaks, especially to companies to repatriate their overseas earnings, in some kind of swap for jobs. No such thing will happen, sure there will be a few winners here and there, but nothing substantial and certainly nothing overtime.
If the government wanted to do this, they’d have been better creating an incentive program, which gave them tax deductions for each net new job they created, the longer their total employment numbers were up, net new, the lower the tax rate on repatriation would go.
I posted the following on twitter… but in a debate about it today, realized I’d left the link off for the NPR article. Here it is.
Full transparency, I really benefitted from share options during the last tax holiday for corps. Bringing money back.Over 10-year period ibm lost 100,000 US jobs. Anyone thinks it will be different this time, isnt thinking at all. #GOPTaxScam#GOPTaxPlanhttps://t.co/IH4qxvIH1M
And it wasn’t just ibm… And it won’t be this time. Most of the companies effected already have billions of dollars in the USA and could create jobs now. Share options are not evil, they do act as a great motivator, I know. However, 90% of the value goes to the top 1%
NPR reached out to seven tech giants – Apple, Alphabet, Microsoft, Facebook, Intel, Oracle, Cisco – to ask, would they use repatriated money to create jobs in the U.S.? Not a single one would make a commitment on the record
And I know I played a big part in that, encouraging, promoting, cajoling and educating senior management and execs that there was a tidal wave of tech coming from India and China, and if they were not on it, they’d be drowned by it…
But that still doesn’t make it right to cut tax that is needed to supports schools medical and welfare, infrastructure and more, when there is already enough money slushing around. #GOPTaxScam#GOPTaxPlan
One mans crusade to limit Government, what he wanted, how he did it, and what happened. At least Bruce was principled. A great listen, especially on the consequences for the State and Bruce(The Pariah?)
Automation is everywhere, but most of us don’t notice it. Every product we buy, every service we use has been touched by automation, some more than others. Think about the products you buy about the grocery store? Come in a package? Packed by machine!
I’ve had some interesting emails from regular followers/readers about automation. I don’t think people quite understand how invasive and creeping automation is.
Here is a perfectly simple example. I live on a new development in Colorado. Some 70 single family homes, and now they are moving into the multi-family condo and town homes. They’ve built two condo buildings, and a 3rd 12-plex is going up now, literally right across the street.
First, let’s be clear, this isn’t a pre-fabricated building. It’s a unique design to this location, that most would consider “traditional construction”. Only it isn’t, it’s massively labor free, and largely “skilled-labor” free.
The construction is typical timber frame, in the old days, there would have been an army of craftsmen working on site, the continuous sound of saws and hammers. While there are some professional craftsmen on site, the bulk of the construction is being done by “nail gun jockeys” using pre-cut, assembled panels and components. They just nailed them into place.
Of course, walking pass this, you’d never normally take a second look. Since it’s directly opposite my home office, everytime I look out the window I see it. What do I see?
Creeping factory assembly and automation. All the major parts arrive pre-cut to size; the joists and all the boards for the side that need holes for windows and door arrive pre-cut. The original boards come from Canada and Mexico. Anyone who has seen the home improvement shows knows that the boards are not cut by craftsmen and craftswomen, but simply cut by operator assisted laser cutting machines. What do all these things have in common? Automation.
It would be easy to simple, let’s at least bring back the board creation, prep and the component assembly to the USA. Indeed easy to say. That assumes we have the raw material, and that the factories exist that can manage the increased workload. If they can’t then let’s assume they can be built.
What happens then? Well, the businesses that do the manufacturing either produce the same goods at the same price as they are available overseas, which will be hard. The US no longer has the same wealth of natural resources. Those that we do have are harder to extract, or come with environmental, planning or development restrictions. Even if these were lifted, they would still come with a price tag.
Those costs, plus any for plant construction, or increased raw material cost would be passed onto us. Effectively doing a “Carrier” and raising prices to cover their increased costs.
Automation is everywhere, but most of us don’t notice it. Every product we buy, every service we use has been touched by automation, some more than others. Think about the products you buy about the grocery store? Come in a package? Packed by machine! Ready made meals, the whole production line from animal slaughter to food prep and cooking are all now largely automated. It’s invisible, invasive and all encompassing.
Delaware, Nevada, along with the U.S. Virgin Islands, are known in particular for loose regulations and low taxes. You can park your money in America behind a dubious corporate facade, without going “offshore”. America rates third behind Switzerland and Hong Kong as a popular tax haven, and far higher than Panama, at 13th. When you here about those massive corporations with billions overseas, it’s not actually sitting in banks in 3rd world countries, it’s often in “tax avoidance” holding companies, who have their cash here in the USA. It’s all bookkeeping entries a rather than overseas.
US Tax rates are already super-low, contrary to what you hear from Presidential candidates. Super-rich Americans have less need to seek tax havens because they have less to lose.
Many small and large American and foreign companies help wealthy clients set up offshore shell corporations — that itself is not illegal, as long as the those they set them up for are not trying to hide criminal proceeds or dodge tax obligation.
Remember though, as Bloomberg News said back in January, before the “Panama Papers” were known: The World’s Favorite New Tax Haven Is the United States. Remember, for each dollar a corporation or wealthy individual doesn’t pay, it has to get made up somewhere. That either means someone else pays it, or services get cut.
Fran Hendys offshore blog has good coverage of tax related issues, it’s her specialist subject, where as I just angry more people can’t see what is going on.
I woke up early yesterday, after a few minutes decided to read my phone, and there was the blow-up over the “Panama papers”. I read the BBC’s excellent “live” page which in twitter-timeline style was posting news and highlights as they uncovered details.
And then I went back to sleep. There wasn’t anything really new here, it just confirmed what many people already knew, third world dictators, power junkies and desperate wanna-live-forever celebrities were cheating on a massive scale.
Later in the day many of my politically minded friends posted links, articles and critiques on facebook and twitter. Ultimately the leak is a big deal as it takes away on of the key value propositions of this type of activity, secrecy. Without secrecy, the sorts of deals, services and tax avoidance is sort-of-meaningless.
What most ordinary people have overlooked, or turned a blind eye to is that they more than likely benefit from similar schemes. If you’ve used the services of, or bought stuff from IKEA, Pepsi, Starbucks, Microsoft, been to Walt Disney theme park, then you too have benefited or contributed to tax avoidance. Indeed, almost everyone orders from Amazon, and in many cases, doesn’t pay tax that they would have paid had they bought the self same product from a local store.If you bank with Barclays, Citigroup, Deutsche Bank, HSBC, JP Morgan, then yep, same thing.
“The World’s Favorite New Tax Haven Is the United States.” Why? Because even American law firms dedicated to protecting the financial assets of the world’s elite say the US is a perfectly effective tax haven”
What make the Panama papers different, is it gives the tax authorities around the world the chance to go after individuals. Thats much easier and much more interesting than going after these big tax avoiding companies. As always, it’s divide and conquer.
Not doubt entirely coincidentally, when I collected my mail yesterday, I got a full FACTA request/disclosure from my bank, FirstDirect, a subsidiary of HSBC. So, they can make it very difficult for me to maintain a bank account back in the UK, and will directly report to the US Inland Revenue Service, I on the other hand can do nothing about their deliberate tax avoidance, that the UK and US Tax authorities know all about.
It’s tax time in Travis county and Austin, that means it’s the annual hand wringing and whining because the property values are up again, by huge amounts.
Taxes are all relative. The total of tax paid is still stunningly low compared to the quality of life and services you get for that. Yes, property taxes are high, but sales tax is relatively low, there is no state income tax, and while the Ledge and Republicans have you convinced that Federal Taxes are high, and money being wasted on drug taking, idle, work shy, “minorities”, it doesn’t matter that that is or is not true, taxes are not really high.
I have never had children in school in Austin, and will never have. I would guess I’ve paid over $60,000 for that choice alone. I’m guessing when most people complaigning were born or arrived in Austin, there were already schools? If thats true, someone paid for them. Probably a lot of people paid taxes for them and couldn’t use them as they were still being built. I’m guessing when they arrived the city had services, roads and other common amenities. How did they get there, someone paid taxes for them.
Those complaining are simply paying for the next generation and you are paying so that those families who can’t afford private education, have some expectation of having children who have a chance in life, and don’t become a burden on the same tax paying society.
I think the problem many of us have, is, those that complain about taxation seem out of touch or sheltered by comparison and lack empathy or sympathy for the real challenges. While I don’t know you, or anything about your quality of life, I’m guessing you don’t worry about water, food, and live in fear because you live in a dangerous environment? All the facilities, effort, and labor that goes into providing the conditions that allow you to live that way, were in general, provided by taxation. Usually that taxation was provided by someone else, your forefathers, others, the people that founded your city etc.
Too many people these days lack empathy, they are, in some respects selfish. They demanding they keep more of THEIR income, and not understanding that if they had to pay their fair share for the free facilities they get to use, in what is essentially a pretty dam good 1st world life, would be paying way over 50% of their total income in taxes. Even if taxes stayed the same, that would mean real cuts being made. Those cuts almost always are targeted at the people who will complain least, because they often are in real fear, too busy getting by.
Yep, I hate the way property taxes are done in Travis County, it’s a sham. Businesses are not assessed fairly, there are too many suspicious valuations. However, while my income has stayed relatively flat since I arrived in Austin from the UK via New York City, my total gross income is still way up and I do not participate in any tax avoidance schemes. So when the politicians promise homestead exemptions, reducing the tax bill etc. they are doing nothing but pandering to the lowest common denominator, and increasingly that represents a generation who don’t understand how good they have it.