Comments on: Here Comes the Windfall Profit Tax ! http://www.ritholtz.com/blog/2009/10/here-comes-the-windfall-profit-tax/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Tue, 14 Feb 2012 21:16:44 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: Greg0658 http://www.ritholtz.com/blog/2009/10/here-comes-the-windfall-profit-tax/comment-page-1/#comment-227952 Greg0658 Wed, 21 Oct 2009 13:31:03 +0000 http://www.ritholtz.com/blog/?p=41685#comment-227952 dagmountain at 3:54pm "busy making plans for a national sales tax" as the saying goes .. the devil is in the details .. if all sales transactions including trades in commodities and corporate stocks were taxed at some rate .. this traders world for profit would be curtailed and would restore value to actually making a widget for a living instead of this cash pile pushers world that has taken over .. on your point of the ramifications of sales taxes on the products that all commonfolk and elites alike purchase .. I agree that the pile of cash for the commonman is less full of spare cash for taxes .. therefor it may sound unfair - but a long tail graduated taxation system should be designed .. and its not unfair .. as the commonman builds wealth thru the pyramid schemes and becomes an elite .. more taxes are required to keep the base sound and a logical elite should know and appreciate this .. so long as the graduated scale is upwardly fair to his/her level of players and beyond ^ - v dagmountain at 3:54pm “busy making plans for a national sales tax”
as the saying goes .. the devil is in the details ..
if all sales transactions including trades in commodities and corporate stocks were taxed at some rate .. this traders world for profit would be curtailed and would restore value to actually making a widget for a living instead of this cash pile pushers world that has taken over ..
on your point of the ramifications of sales taxes on the products that all commonfolk and elites alike purchase .. I agree that the pile of cash for the commonman is less full of spare cash for taxes .. therefor it may sound unfair – but a long tail graduated taxation system should be designed .. and its not unfair .. as the commonman builds wealth thru the pyramid schemes and becomes an elite .. more taxes are required to keep the base sound and a logical elite should know and appreciate this .. so long as the graduated scale is upwardly fair to his/her level of players and beyond
^
-
v

]]> By: philipat http://www.ritholtz.com/blog/2009/10/here-comes-the-windfall-profit-tax/comment-page-1/#comment-227835 philipat Wed, 21 Oct 2009 01:40:00 +0000 http://www.ritholtz.com/blog/?p=41685#comment-227835 The ony problem I have is that these are PUBLIC Companies and the bonuses paid are shortchanging what should be shareholders income. Trade privately, problem gone, pay whatever bonuses you can earn. Of course, I'm not sure that savvy private capital would tolerate a bonus payout of 50% of revenues? The ony problem I have is that these are PUBLIC Companies and the bonuses paid are shortchanging what should be shareholders income. Trade privately, problem gone, pay whatever bonuses you can earn. Of course, I’m not sure that savvy private capital would tolerate a bonus payout of 50% of revenues?

]]> By: dagmountain http://www.ritholtz.com/blog/2009/10/here-comes-the-windfall-profit-tax/comment-page-1/#comment-227714 dagmountain Tue, 20 Oct 2009 19:54:02 +0000 http://www.ritholtz.com/blog/?p=41685#comment-227714 Here is something that the readers of this blog might want to hear about- In the meantime, in elite Washington circles people are busy making plans for a national sales tax so that the government can limit the fiscal damage caused by the bankers' recession. A sales tax is of course very regressive, since low- and moderate-income people typically spend the vast majority of their income, while our banker friends will more likely to be able to save some of their income or spend it in other countries where they will not be paying this new sales tax. -Dean Baker http://www.michaelmoore.com/words/mike-friends-blog/mike-friends-blog-take-america-back-banks Here is something that the readers of this blog might want to hear about-

In the meantime, in elite Washington circles people are busy making plans for a national sales tax so that the government can limit the fiscal damage caused by the bankers’ recession. A sales tax is of course very regressive, since low- and moderate-income people typically spend the vast majority of their income, while our banker friends will more likely to be able to save some of their income or spend it in other countries where they will not be paying this new sales tax. -Dean Baker

http://www.michaelmoore.com/words/mike-friends-blog/mike-friends-blog-take-america-back-banks

]]> By: dagmountain http://www.ritholtz.com/blog/2009/10/here-comes-the-windfall-profit-tax/comment-page-1/#comment-227702 dagmountain Tue, 20 Oct 2009 19:16:50 +0000 http://www.ritholtz.com/blog/?p=41685#comment-227702 Great story Barry! Thanks for reporting on the positive externalities of financial terrorism. Max Kiaser would be so proud of you. Great story Barry! Thanks for reporting on the positive externalities of financial terrorism. Max Kiaser would be so proud of you.

]]> By: ZackAttack http://www.ritholtz.com/blog/2009/10/here-comes-the-windfall-profit-tax/comment-page-1/#comment-227695 ZackAttack Tue, 20 Oct 2009 18:52:56 +0000 http://www.ritholtz.com/blog/?p=41685#comment-227695 So we sat idly by while Congress acted in contravention of constituency by passing the TARP, and now we want to clawback a tiny percent of that amount post-facto? If we hadn't been held hostage at CDS-point by The 19 Financial Terrorists, we wouldn't need to have this discussion at all. Should have let those POSs burn to the ground. So we sat idly by while Congress acted in contravention of constituency by passing the TARP, and now we want to clawback a tiny percent of that amount post-facto?

If we hadn’t been held hostage at CDS-point by The 19 Financial Terrorists, we wouldn’t need to have this discussion at all.

Should have let those POSs burn to the ground.

]]> By: impermanence http://www.ritholtz.com/blog/2009/10/here-comes-the-windfall-profit-tax/comment-page-1/#comment-227692 impermanence Tue, 20 Oct 2009 18:34:28 +0000 http://www.ritholtz.com/blog/?p=41685#comment-227692 Barry writes: "One must think local retailers, Co-op sellers and Ferrari dealers must similarly be feeling a small sense of relief. A silver lining, to say the least . . ." What a relief, I was really concerned about the Ferrari dealers in my town too. Barry writes:
“One must think local retailers, Co-op sellers and Ferrari dealers must similarly be feeling a small sense of relief. A silver lining, to say the least . . .”

What a relief, I was really concerned about the Ferrari dealers in my town too.

]]> By: DeDude http://www.ritholtz.com/blog/2009/10/here-comes-the-windfall-profit-tax/comment-page-1/#comment-227686 DeDude Tue, 20 Oct 2009 18:15:07 +0000 http://www.ritholtz.com/blog/?p=41685#comment-227686 TI am not suggesting that the current crop of democrats are squeky clean – just that they are less dirty and less subservient to the millionaires than the republicans. Remember who it was that got the banksters that delay in the new credit card rules (a delay now being used to kill regular people squeezed by the economic mess those same banksters created). It is just fine with me if reforms take away influence from all the rich (carpenters, unions, investment bankers, business owners, etc, etc,). In a real democracy influence should be per voter not per million dollar in wealth. TI am not suggesting that the current crop of democrats are squeky clean – just that they are less dirty and less subservient to the millionaires than the republicans. Remember who it was that got the banksters that delay in the new credit card rules (a delay now being used to kill regular people squeezed by the economic mess those same banksters created).

It is just fine with me if reforms take away influence from all the rich (carpenters, unions, investment bankers, business owners, etc, etc,). In a real democracy influence should be per voter not per million dollar in wealth.

]]> By: TDL http://www.ritholtz.com/blog/2009/10/here-comes-the-windfall-profit-tax/comment-page-1/#comment-227675 TDL Tue, 20 Oct 2009 17:49:06 +0000 http://www.ritholtz.com/blog/?p=41685#comment-227675 DeDude, Check your facts. The majority of Democrats have also been supporting all these bailouts. Also, Unions are massive contributors and have preferential treatment in the legal & political system. I would hardly call hard working carpenters millionaires (and if they are, good for them.) So it's hardly just the millionaires who control the government. There are a lot more players in this game then just the wealthy. Regards, TDL DeDude,
Check your facts. The majority of Democrats have also been supporting all these bailouts. Also, Unions are massive contributors and have preferential treatment in the legal & political system. I would hardly call hard working carpenters millionaires (and if they are, good for them.) So it’s hardly just the millionaires who control the government. There are a lot more players in this game then just the wealthy.

Regards,
TDL

]]> By: TDL http://www.ritholtz.com/blog/2009/10/here-comes-the-windfall-profit-tax/comment-page-1/#comment-227672 TDL Tue, 20 Oct 2009 17:45:19 +0000 http://www.ritholtz.com/blog/?p=41685#comment-227672 I'd also like to say that the knee jerk reaction to these bonuses is silly. This is how the street has been doing business for decades. These banks are the distributors of "new" money (i.e. the fiat $ that are dumped into the economy by the Fed.) These banks get to front run everything; goods, services, assets (physical as well financial.) There are plenty of honest players on the Street who are being compensated for reasonable risks, honest selling, & prudent management of assets. These people will be harmed along with the bad actors who lie, cheat, and steal. Also, once a law (like this proposed tax) is put in place only time stands in the way before it is expanded. First it will be imposed on the TBTF institutions, then it will creep to the finance industry as whole, then it will expand to other sectors of the economy. This is the nature of government, create a precedent and then use that precedent as a rationale to expand your power. We already have laws that deal w/ fraud & insolvent institutions that would adequately deal with this corrupt breed of bankers; let's not advocate for more laws & more power to the political center. Regards, TDL I’d also like to say that the knee jerk reaction to these bonuses is silly. This is how the street has been doing business for decades. These banks are the distributors of “new” money (i.e. the fiat $ that are dumped into the economy by the Fed.) These banks get to front run everything; goods, services, assets (physical as well financial.) There are plenty of honest players on the Street who are being compensated for reasonable risks, honest selling, & prudent management of assets. These people will be harmed along with the bad actors who lie, cheat, and steal.

Also, once a law (like this proposed tax) is put in place only time stands in the way before it is expanded. First it will be imposed on the TBTF institutions, then it will creep to the finance industry as whole, then it will expand to other sectors of the economy. This is the nature of government, create a precedent and then use that precedent as a rationale to expand your power. We already have laws that deal w/ fraud & insolvent institutions that would adequately deal with this corrupt breed of bankers; let’s not advocate for more laws & more power to the political center.

Regards,
TDL

]]> By: DeDude http://www.ritholtz.com/blog/2009/10/here-comes-the-windfall-profit-tax/comment-page-1/#comment-227668 DeDude Tue, 20 Oct 2009 17:39:04 +0000 http://www.ritholtz.com/blog/?p=41685#comment-227668 Mannwich; what I want the populace to do is to substitute abortion with public financing of elections, if they absolutely have to choose a single issue for their votes. If the people demanded public funding of elections and would rather vote for a pedophile than a candidate opting out of it, then "we the people" could greatly decrease the influence of "we the millionaires" on our government. As it is now, the idiots on the right are all hugely concerned about any politician that want to increase taxes or spending. As a result our government has been sold to Wall Street for a few million in campaign contribution to each senator and representative. Fox news has sold the idea that tax and spend is the essential issue to the idiots listening to them, when the real issue always is who the man behind the curtain is. So the taxpayers lose a trillion because they refuse to outbid Wall Street and use a billion to buy back their government. Talk about penny wise and pound foolish. Mannwich; what I want the populace to do is to substitute abortion with public financing of elections, if they absolutely have to choose a single issue for their votes. If the people demanded public funding of elections and would rather vote for a pedophile than a candidate opting out of it, then “we the people” could greatly decrease the influence of “we the millionaires” on our government. As it is now, the idiots on the right are all hugely concerned about any politician that want to increase taxes or spending. As a result our government has been sold to Wall Street for a few million in campaign contribution to each senator and representative. Fox news has sold the idea that tax and spend is the essential issue to the idiots listening to them, when the real issue always is who the man behind the curtain is. So the taxpayers lose a trillion because they refuse to outbid Wall Street and use a billion to buy back their government. Talk about penny wise and pound foolish.

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