Opinion

Felix Salmon

Counterparties

By Nick Rizzo
August 16, 2011

Warren Buffett called on Congress to tax the rich more heavily, which would include fellow richie Carl Icahn’s potential half-billion dollar capital gain in the Google-Motorola deal. Kudos to Staska for predicting that deal, by the way, though he low-balled how much the Goog was willing to shell out.

An analyst estimates that AOL is spending $160 million a year–half the cost of buying the Huffington Post–on its local news network Patch.

Record labels, apparently not screwed enough at the moment, are facing the threat of losing much of their backlist to artists and songwriters such as Bruce Springsteen and Billy Joel.

Presumably as some mysterious element of their plot to take over the world, Carlyle Group is reportedly selling America’s ninth-largest cable operator for about $3 billion while also paying over $4 billion for clinical research company Pharmaceutical Product Development, Inc.

And there are fewer Freemasons than there have been in a long, long time.

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Forbes provided a counter-point to Buffet’s opinion piece, via Tim Worstall: http://goo.gl/cjr4F

It’s amusing, because Worstall is playing loose with how he assigns corporate taxes. In his attack on Buffet, he insists that investors are ultimately paying for that corporate tax (therefore he assigns that corporate tax rate to Buffet’s tax rate). But in a post from last year, he also statedd that consumers were paying for that corporate tax: http://goo.gl/ansKG

Worstall is effectively double-dipping. I bet if given the chance, he’d find a way to show that people below the poverty level are effectively being taxed thrice via corporate taxes. ;)

I got a good laugh out of Forbes, yet again!

Posted by GRRR | Report as abusive
 

Freemasons appear to have missed that all their conservative would-be members have joined the evangelical movement instead and all their liberal would-be members no longer feel the need to exclude women from the discussions of how the world is to be run. Stand still and the world will spin right out from under you.

Their report is amusing, however. Especially the part where they seem rather surprised by the cultural development of people actually wanting to spend time with their spouses.

Posted by BlakeA | Report as abusive
 

GRRR Worstall does the same incorrect math that a lot of Amercians do. He adds up 2 rates to make a big bad tax rate … “Giving us a tax rate of 50% on dividends.” It always shocks me that few understand how they are taxed and that tax brackets and tax rates are not the same and that your income and taxable income are not the same.

Corporations aren’t paying 35% income tax. I am willing to bet not one of them pay even close to it. many giant ones pay none. With loopholes, good tax lawyers, and offshore questionable accounting, some Corporations are getting money BACK (like GE) even though they are outsourcing rather then creating more jobs at home. The consumer and shareholder end up paying those taxes.

And as for the CEOs and dolts who are whining they again need that one time reprieve from taxes to come home, the result last time was a decrease in jobs and a windfall for shareholders. The one time reprieve didn’t change a thing other than to line more pockets.

They just do not care about American jobs, hence hire elsewhere and tax dodge in off shore accounts, so they should be heavily taxed, with no loopholes and those who do make jobs at home are the ONLY ones who should be rewarded.

http://viableopposition.blogspot.com/201 1/08/americas-corporate-tax-holiday-2004 .html

Buffets point was solely that they have more and so should ensure they are doing their part. They do not need more tax breaks and austerity means the rich cannot come out unscathed as they would like.

Here is a quote to remember…

“I think when people take a look back at this moment in our economic history, they’ll recognize tax cuts work.”
George W. Bush, March 12, 2008

Posted by hsvkitty | Report as abusive
 

Hsvkitty,

Lets start with the largest public company in the world Exxon. Yahoo finance says they paid 21 billion in tax on pretax income of 53 billion. Sounds like Exxon pays taxes ABOVE the maximum federal rate… perhaps they need some better accountants and lawyers eh?

http://finance.yahoo.com/q/is?s=XOM+Inco me+Statement&annual

I think yahoo finance is picking up royalties paid to governments the world over as part of taxes Exxon supposedly paid… but still I think big companies might be pulling more weight than given credit for.

In my twisted world Exxon did not and cannot pay any tax of any kind. Exxon is owned by people and other legal entities like insurance funds, endowments, ect. Part of Exxon’s 21 billion dollar contribution to the public good comes from the few shares I own in my “tax free” ROTH IRA. Taxation at the corporate level is a pleasant fiction… but it plays well to the masses so it will probably always exist.

Posted by y2kurtus | Report as abusive
 

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