Become a fan of Slashdot on Facebook

 



Forgot your password?
typodupeerror

Comment: Re:it's not "slow and calculated torture" (Score 1) 325

Yep. Eventually your lenders want to be repaid. This is why most sovereign debt is rolled over. The EU has put Greece in a situation where it can't roll over its debts and must pay them as they come due. Almost no nation can do this for all of its debt. Think of it like this, you can payoff your home mortgage over thirty years, if the bank suddenly accelerates it and demands all of the money tomorrow that isn't going to be doable unless you can find another lender. Unfortunately, the sovereign debt markets tend to dislike long maturity bonds. This means the only loans many nations can get need to be repaid in five or ten years. In normal circumstances a nation can roll their debt over.

^ all true...

How many nations could? Germany *might*, given their huge hard currency reserves, plus their gold and other physical assets. (Many people don't know this, but after the United States, Germany holds the world's largest gold reserves)

China probably could, given the massive foreign currency they hold.

The US of course could, given that the US Dollar is the world's reserve currency, we could print enough to pay it all off tomorrow, abit at the cost of inflation, but we could.

Who else? Honestly, I think that might be it.

Comment: Re:Germany should pay war reparations for WWII (Score 2) 325

If Germany paid war reparations for the brutal occupation and raping of the country of Greece, it would amount to something like $150-200 Billion owed.

Do you actually believe that, or are you a paid member of the Greek government?

Actually, I'm not such which would be worse...

Germany did pay, nearly 50 years ago, and settled its legal obligations at the time, money which Greece accepted.

The issue is closed, it doesn't get reopened every few decades for convenience. Frankly, most of the people alive in 1945 are no longer here, it has passed into history, let it go...

Comment: Re:just what we all love (Score 1) 228

by FlyHelicopters (#49765429) Attached to: Amazon Decides To Start Paying Tax In the UK

They would try to raise the price (not likely possible because, as stated above, if they could get away with a higher asking price, they would have done so on their own, why not rake in more if you can?) but they might go out of business. With a 90% tax, it's actually likely.

They can't raise prices all by themselves.

This is why Walmart can't just raise their base pay to $15/hr, because Target doesn't have to.

If ALL companies were suddenly forced to do so, then they would all raise their prices.

If all companies are taxed more, prices will go up across the board, just like if the min/wage was raised to $15, or even $50/hr.

If everyone has to pay it, then everything gets more expensive.

Comment: Re:To be more precise, Amazon will collect on taxe (Score 1) 228

by FlyHelicopters (#49765413) Attached to: Amazon Decides To Start Paying Tax In the UK

"Somewhere else" is taxed too, so it'll do you no good. You'll simply have to settle for a level of profit the market can offer, the same as everyone else. Of course, you could sit on your $10 million and let inflation eat it away.

Spoken just like someone who doesn't actually have to deal with that situation...

Comment: Re:This isn't a question (Score 1) 536

by FlyHelicopters (#49762165) Attached to: Ireland Votes Yes To Same-Sex Marriage

There are exactly 0 valid reasons why gay couples shouldn't be allowed to get married, that's it, zero reasons, as in absolutely none. Any country or region which bans gay marriage or has to ask if it should be allowed it just a bunch of uncivilized hicks who need to grow up. Marriage is a union of two people who love each other and that is all it is, period

Why just two people? That seems like it discriminates against people who want three people in a marriage...

Comment: Re:To be more precise, Amazon will collect on taxe (Score 1) 228

by FlyHelicopters (#49762055) Attached to: Amazon Decides To Start Paying Tax In the UK

You maximize profit. the amount of tax you pay on profit is irrelevant to the process of maximizing it. Taxes on inputs or sales can affect prices because they also affect your competitions pricing power. Taxes on profits might encourage more re-investment of profits but they don't affect prices unless, for some inexplicable reason, you have decided to make less money that you could.

No, you don't get it.

If I expected to make $1 million return on my $10 million capital investment, then that is the after tax profit I need to make. The before-tax number doesn't matter. It could be $1 million with no tax or $2 million with 50% tax.

If that means I need to make a $5 million before tax profit to make it, then I will. (assuming you put an 80% tax in place)

The only way to do that is raise prices. If I am unable to raise prices that far, then I'll invest the $10 million of capital somewhere else.

If my current profit is $1 million and you now say it will be only $100K due to new taxes, then either my prices have to go way up, or the product/service won't be offered.

Comment: Re:just what we all love (Score -1) 228

by FlyHelicopters (#49761945) Attached to: Amazon Decides To Start Paying Tax In the UK

Taxes are on profits, not sales.

Yes, they are... but do this mental exercise...

Imagine if the tax on profits was 90%. Does that mean that all the various companies would keep their prices right where they were and carry on like before?

Or would there be some massive price increases?

If I have $1 million to invest, I expect a certain return on that investment. If the amount taken by the government goes up by too much, I'm either going to compensate for that or go do something else.

Comment: Re:To be more precise, Amazon will collect on taxe (Score 1) 228

by FlyHelicopters (#49761885) Attached to: Amazon Decides To Start Paying Tax In the UK

Consumers tend to get fed up with this cycle and vote in politicians willing to increase the tax rates as profits go up, which leaves companies facing a choice between accepting the taxes and somewhat lower profits or closing down and accepting zero profit.

Try this mental exercise...

Raise the tax rate to 75% of the corporate profit and see what happens...

Amazon is a publicly traded company, there are expectations of return on capital that it needs to take into consideration.

Now granted, as a dot-com company, it has skirted those for awhile, but that won't last forever. Extend that to more traditional businesses and you'll find that there is a floor to the level of return on investment that investors are willing to accept.

You assume there will always be someone to step in and accept lower profit. Only to a point, beyond which, no one wants to service the market.

Comment: Re:To be more precise, Amazon will collect on taxe (Score 4, Informative) 228

by FlyHelicopters (#49761873) Attached to: Amazon Decides To Start Paying Tax In the UK

Taxes on profits are different than taxes on products

No, they aren't. You've been told they are, you've been lied to that they are, but they aren't.

I've owned a business for more than 20 years, I assure you that taxes are just another expense, just like the utility bill is. It even goes on the books as an expense.

---

Yes, yes, you think that if I made $1 million in profit last year and the government wants 30% of that, that it shouldn't raise prices. You'd be wrong.

The "before tax" profit number doesn't mean anything, it doesn't exist. The "after tax" number is the only one that counts.

So in the above case, I made $700k, period. The $300k of tax is just another expense.

If you raise the tax to 50%, then my income goes to $500k.

Now you may say, "well tough, you'll just have to make due with earning less". Nice, but it doesn't work that way. At $500k, the income may no longer be worth the cost of capital investment and it is time to go do something else.

The problem is, the return on capital applies to everyone. If it doesn't make sense for Walmart to do it, then it won't make sense for Target either.

The basic economic principles don't change based on the company.

Comment: Re:To be more precise, Amazon will collect on taxe (Score 1) 228

by FlyHelicopters (#49761857) Attached to: Amazon Decides To Start Paying Tax In the UK

Just because it's a standard practice doesn't mean it isn't vile behavior. Passing the tax buck along is one of the worst corporate offenses.

You are proof of the poster's point...

If you actually believe that, then you've been hoodwinked by the politicians...

The OP is right, you're wrong. Corporations don't pay taxes, people do, and Citizens United aside, corporations aren't people.

A company has to make a profit to stay in business. Every dollar they pay, be it to the utility company to keep the lights on or the government in the form of taxes, is just an expense.

They must have total income after expenses that is a positive number. It really is that simple.

Comment: Re:just what we all love (Score -1, Troll) 228

by FlyHelicopters (#49761825) Attached to: Amazon Decides To Start Paying Tax In the UK

That's not how pricing works, no matter how much people seem to think so. If they could get away with raising prices they already would have. They don't need the incentive of taxes.

Yes, it is, and you're simply wrong...

Do this simple mental exercise... Imagine if a new gross receipts tax was put into place that said that all businesses had to pay a 50% tax on their total sales...

So... using your logic, prices wouldn't go up?

If they don't, every company would simply go out of business, or at least 99% of them would. Very few companies have that kind of profit margin.

The money has to come from somewhere, and your fantasy utopia "unicorn land" that it will just come from the "rich" and not cost you anything is just that... a fantasy...

The solution of this problem is trivial and is left as an exercise for the reader.

Working...