tag:blogger.com,1999:blog-6959751201989948904.post3187225846547705527..comments2023-10-16T08:12:48.795-04:00Comments on Uncommon Liberty: More Problems for MichiganUnknownnoreply@blogger.comBlogger8125tag:blogger.com,1999:blog-6959751201989948904.post-90386505837575285482008-04-23T09:28:00.000-04:002008-04-23T09:28:00.000-04:00Thanks. I was figuring it had to do with opportun...Thanks. I was figuring it had to do with opportunity costs. (Doesn't everything?)James Hanleyhttps://www.blogger.com/profile/18431950784819780004noreply@blogger.comtag:blogger.com,1999:blog-6959751201989948904.post-24816367513160872412008-04-23T01:31:00.000-04:002008-04-23T01:31:00.000-04:00The profit required to sustain a business activity...The profit required to sustain a business activity is the opportunity costs of the capital employed, adjusting for risk.<BR/><BR/>For a tax to reduce the profit a business will accept, you would need to increase the cost of all alternative uses of the capital, everywhere in the world. Otherwise you get capital flight until the marginal unit of capital is producing sufficient profits to justify Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6959751201989948904.post-29704389660400878232008-04-22T09:17:00.000-04:002008-04-22T09:17:00.000-04:00"The enduring tragedy of 21st century government i..."The enduring tragedy of 21st century government is not the the people aren't getting the government they want, its that they are getting the government they want."<BR/><BR/>Yes, I agree. It's a case of individual rationality adding up to collective irrationality. And that's why I consider myself a public choice-style political scientist. They're the ones who figured that out, and too many James Hanleyhttps://www.blogger.com/profile/18431950784819780004noreply@blogger.comtag:blogger.com,1999:blog-6959751201989948904.post-7735937510884001542008-04-22T01:37:00.000-04:002008-04-22T01:37:00.000-04:00James:If they can't reduce wages they will either ...James:<BR/><BR/>If they can't reduce wages they will either increase prices or lower output / cut perks as you identified. But in any case capital markets are too elastic to bear any but the tiniest burden of taxation.<BR/><BR/>I agree with your point about the legislators as well. After reading <I>The Myth of the Rational Voter</I> I am very sceptical of the ability of politicians to defy Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6959751201989948904.post-13117487667246630792008-04-21T12:52:00.000-04:002008-04-21T12:52:00.000-04:00Oh, dear, an ideologue. Another chucklehead who t...Oh, dear, an ideologue. Another chucklehead who thinks it is <I>only</I> about government wanting to take more money from us.<BR/><BR/>No recognition that these politicians are responding to the demands of constituents for all kinds of services, and that any spending cut will cause them to scream loud and long. No, it's just gummint, it ain't us.<BR/><BR/>I'd like to see spending cut, too, and James Hanleyhttps://www.blogger.com/profile/18431950784819780004noreply@blogger.comtag:blogger.com,1999:blog-6959751201989948904.post-63070954084657096352008-04-21T11:34:00.000-04:002008-04-21T11:34:00.000-04:00It is apparent that their only concern is money, ...It is apparent that their only concern is money, not good government. The expanded Service Tax, then the switch from that to the Michigan Business Tax and Gov. Granholm's recent comment that she was willing to make changes as long as it does not cut revenue is proof positive. If we do not make this an issue and expose this for what it is, we are making a sad mistake. They have made no effort toWCTaxpayershttps://www.blogger.com/profile/04943559327160328468noreply@blogger.comtag:blogger.com,1999:blog-6959751201989948904.post-61092828206938461882008-04-21T07:46:00.000-04:002008-04-21T07:46:00.000-04:00Whether businesses can always pass on the taxes is...Whether businesses can <I>always</I> pass on the taxes is something I've wondered about. Clearly owners want all business costs passed onto the consumer, and I would see higher taxes as no different than higher energy costs or increased prices of raw materials, which is why I'm skeptical of the "make the businesses pay their share" rhetoric.<BR/><BR/>On the other hand, we have minimum wage laws,James Hanleyhttps://www.blogger.com/profile/18431950784819780004noreply@blogger.comtag:blogger.com,1999:blog-6959751201989948904.post-9990961858586418292008-04-21T01:17:00.000-04:002008-04-21T01:17:00.000-04:00Its a common saying among economists that business...Its a common saying among economists that businesses do not pay taxes. The level of profit a business has to make is driven by capital markets, so shareholders don't really suffer much of a tax burden. Instead the tax is paid by consumers (in terms of higher prices) and workers (in terms of lower wages).Anonymousnoreply@blogger.com