Comments on: Why Kickstarter’s great for tax revenues

By: MrRFox

MrRFox — Tue, 19 Jun 2012 04:25:07 +0000

“Thinking creating jobs and start-ups could be bad for our economy is out of sense, unless the one who says that is stupid ….” (Photon)

I’m often (correctly) accused of exactly that. Was thinking about this thread before falling asleep (Good God – I gotta get a life!) – it’s probably a societal benefit that people explore ideas by listing on KS, and finding out that nobody wants their crazy stuff, rather than borrowing a couple hundred thousand $ from a bank and then finding out.

By: photon2211

photon2211 — Mon, 18 Jun 2012 23:47:53 +0000

Thinking creating jobs and start-ups could be bad for our economy is out of sense, unless the one who says that is stupid (i hope not) or interested (that means not objective…)
No need to discuss, just evidences…wait 5 more years and he will understand.

By: dWj

dWj — Mon, 18 Jun 2012 22:31:42 +0000

I think the point is that the kind of project that gets funded will be different. The government taxes financial returns from investments, but not warm glow returns; these sorts of financing venues make it easier for investors to pursue warm glow at the expense of pecuniary returns.

By: thispaceforsale

thispaceforsale — Mon, 18 Jun 2012 21:30:49 +0000

KS may not be a boon for tax revenue, because it is actually Amazon Payments collecting and distributing the money. And the IRS requires Amazon (or any 3rd party) to file Form 1099-K to report unadjusted annual gross sales information only when BOTH of the following thresholds in a calendar year:
More than $20,000 in gross sales, and more than 200 transactions.

A large number of successful KS campaigns then could (potentially) be going unreported for tax purposes.

By: MrRFox

MrRFox — Mon, 18 Jun 2012 19:16:52 +0000

AIUI, KS is a means of raising initial working capital by collecting pre-paid purchase orders for the “reward” – usually the product itself or something associated with it. Lots of risk on all sides in this model, but it probably funds a lot of things that would never be pursued except for KS, so maybe it’s OK – just OK.

All the tax stuff – doesn’t hang together IMO, but so what?

By: SteveHamlin

SteveHamlin — Mon, 18 Jun 2012 19:15:06 +0000

@Hoosier: unless you think removing middlemen will somehow decrease aggregate demand and increase the private savings rate (doubtful), then the money still gets spent, but merely flows to the Kickstarter entrepreneur instead of flowing to the middlemen. Most people other than middlemen would view that disintermediation as innovation and productivity enhancing, and a net positive for the economy.

When you go to a concert instead of a play, does the economy suffer from job loss and lower taxes?

By: hoosier_gdi

hoosier_gdi — Mon, 18 Jun 2012 19:02:33 +0000

I know nobody likes middlemen, especially in the entertainment business, but their income taxes are lost when they are removed from the process. I’m not saying I disagree with the Kickstarter model, but it can reduce jobs and taxes.