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FedEx's CEO on McCain, free trade and the tax bias against capital-intensive industries.

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Re: FedEx's CEO on McCain, free trade and the tax bias against capital-intensive industries.

#41

Post by joubert »

cperciva wrote: post #5
newaccountname2 wrote: post #3

>We absolutely have to cut the corporate tax. Our current tax rate is about 38%. Even Germany has a 25% rate. This is so disingenuous; Germany also has a 19% VAT, and also has stronger regulations on industry. >If we had a lower corporate tax rate with the ability to expense capital expenditures, guess what? We'd buy more triple sevens. He wants to be able to write off the purchase of planes as expenses? What? They a…

Germany also has a 19% VAT Companies don't pay VAT -- people do.

Of course companies pay VAT, it is the input tax.

Re: FedEx's CEO on McCain, free trade and the tax bias against capital-intensive industries.

#42

Post by joubert »

anamax wrote: post #10
newaccountname2 wrote: post #3

>We absolutely have to cut the corporate tax. Our current tax rate is about 38%. Even Germany has a 25% rate. This is so disingenuous; Germany also has a 19% VAT, and also has stronger regulations on industry. >If we had a lower corporate tax rate with the ability to expense capital expenditures, guess what? We'd buy more triple sevens. He wants to be able to write off the purchase of planes as expenses? What? They a…

> He wants to be able to write off the purchase of planes as expenses? What? They already get to write off depreciation on planes, Expenses are now, depreciation is later. And, if you get one, you don't get the other. I don't know how all the numbers work out, but it could easily be that the tax code encourages borrowing by corporations for things subject to significant depreciation terms. (Interest paid is an expens…

No, there is a distinction between cash flows, and income & expenses. An income or an expense does not require a cash flow, and a cash flow is not necessarily an income or an expense.

Expenses should not be tied to cash layouts, because: (a) purchases are not necessarily expenses, but may be the buying of income-generating assets (i.e. expense is allocated over the life of the asset in the form of depreciation). (b) You can have an expense without laying out cash (e.g. an asset loses value such as a debtor defaulting).

Re: FedEx's CEO on McCain, free trade and the tax bias against capital-intensive industries.

#44

Post by ckinnan »

joubert wrote: post #41
cperciva wrote: post #5

Earlier quoted context omitted.

Germany also has a 19% VAT Companies don't pay VAT -- people do.

Of course companies pay VAT, it is the input tax.

The VAT is directly passed on to the consumer in the form of higher prices.

Re: FedEx's CEO on McCain, free trade and the tax bias against capital-intensive industries.

#45

Post by davidw »

DanielBMarkham wrote: post #38
ovi256 wrote: post #37

Earlier quoted context omitted.

I downvoted you because I know you (and the Economist) are wrong. I'm in Paris, and I've seen downsizing at a startup. They've fired dozens of people with a week's notice, and 2 or 3 months severance pay, AS PER their contracts. It's NOT THE LAW that imposes this (the law imposes nil severance), but the contracts - they had this clause. Furthermore, severance pay is only due for termination that is outside the employ…

Very interesting. We always hear of standard benefits for workers in France, like extended yearly vacation time. How does that work? Is it possible that by working for a startup under a contract that your experience is different than the rest of your countrymen? Just trying to figure out the discrepancies.

Many European countries have tried to introduce different ways of being 'flexible'. Often there is a cutoff for company size, the age of the employee, that kind of thing. A small company may have less requirements in terms of hiring/firing. Also, in recent years, various countries have attempted to introduce different types of contracts. By way of example, Italy has 'standard' contracts, which are the 'real difficult to fire' kind, and the new flexible sort, which are meant to be used for more flexible positions.

What has happened in practice is that newer workers, wherever possible, are hired up with the flexible contracts, which generally offer nothing in the way of severance pay or anything - less than you'd get in the US in most 'good' jobs. Older workers are hired with the standard contracts. This creates a two-tier system with lots of unhealthy side effects.

I have no idea how the details work out in France.

Re: FedEx's CEO on McCain, free trade and the tax bias against capital-intensive industries.

#46

Post by vaksel »

ovi256 wrote: post #37
vaksel wrote: post #25

Earlier quoted context omitted.

here is the reference http://www.economist.com/research/articlesBySubject/displays... if links doesn't work the main pic: http://media.economist.com/images/na/2008w39/Sacking.jpg WTF with all the downvoting? First it was +5 now its 0. If you don't believe the post...google to find out if its true or not

I downvoted you because I know you (and the Economist) are wrong. I'm in Paris, and I've seen downsizing at a startup. They've fired dozens of people with a week's notice, and 2 or 3 months severance pay, AS PER their contracts. It's NOT THE LAW that imposes this (the law imposes nil severance), but the contracts - they had this clause. Furthermore, severance pay is only due for termination that is outside the employ…

maybe the reason is because the pic talks about someone who worked 20 years at a company?

Re: FedEx's CEO on McCain, free trade and the tax bias against capital-intensive industries.

#47

Post by DanielBMarkham »

davidw wrote: post #45
DanielBMarkham wrote: post #38

Earlier quoted context omitted.

Very interesting. We always hear of standard benefits for workers in France, like extended yearly vacation time. How does that work? Is it possible that by working for a startup under a contract that your experience is different than the rest of your countrymen? Just trying to figure out the discrepancies.

Many European countries have tried to introduce different ways of being 'flexible'. Often there is a cutoff for company size, the age of the employee, that kind of thing. A small company may have less requirements in terms of hiring/firing. Also, in recent years, various countries have attempted to introduce different types of contracts. By way of example, Italy has 'standard' contracts, which are the 'real difficult…

We're seeing a similar system playing out over here in some union environments, specifically airline pilots. The "old guard" managed significant concessions from industry, but the newer guys end up with a much less competitive package. So you end up with a two-tiered situation.

Doesn't seem like that is a healthy situation in general.

Speaking of more complex ways of categorizing and rewarding business and employees reminds me of my recent interaction with a local government that had a "start-up" type program in place. I asked about office space and maybe some shared services -- something like an incubator. They were very friendly: I immediately received a 40-page packet by email which was so detailed as to be incomprehensible. (For instance, parking fees were waived up to a certain point, or alternatively fees could be reduced without a limit if I used an office that was farther away). It was like reading a report put together by every aspect of local government, each trying to help but actually making the presentation so complicated it would take an expert system to use or compare it to other offers.

Re: FedEx's CEO on McCain, free trade and the tax bias against capital-intensive industries.

#48

Post by mattmaroon »

Prrometheus wrote: post #31
mattmaroon wrote: post #29

Earlier quoted context omitted.

For proof of that btw: http://www.cnn.com/2008/POLITICS/09/16/dilbert.economy/index... http://www.economist.com/world/unitedstates/displaystory.cfm... "Even among Republican [economist]s Mr Obama has the edge: 46% versus 23% say Mr Obama has the better grasp of the subject

It is my unsupported opinion that economists have Bush fatigue just like everybody else, and are eager to see the regime of permanent deficits and trillion dollar wars out on the streets. Obama does appear at times to be thoughtful, and his advisors are centrists. I think economists are hoping for a second Clinton, which would certainly be better than a third Bush. I hope they are right. It is my unsupported opinion…

Right, and McCain, even without public health care, will lead to a bigger deficit than Obama.

Economists really hate the Bush tax cuts (which McCain now supports making permanent) because they favor the non-working ultra-wealthy.

Re: FedEx's CEO on McCain, free trade and the tax bias against capital-intensive industries.

#49

Post by davidw »

DanielBMarkham wrote: post #47
davidw wrote: post #45

Earlier quoted context omitted.

Many European countries have tried to introduce different ways of being 'flexible'. Often there is a cutoff for company size, the age of the employee, that kind of thing. A small company may have less requirements in terms of hiring/firing. Also, in recent years, various countries have attempted to introduce different types of contracts. By way of example, Italy has 'standard' contracts, which are the 'real difficult…

We're seeing a similar system playing out over here in some union environments, specifically airline pilots. The "old guard" managed significant concessions from industry, but the newer guys end up with a much less competitive package. So you end up with a two-tiered situation. Doesn't seem like that is a healthy situation in general. Speaking of more complex ways of categorizing and rewarding business and employees…

> We're seeing a similar system playing out over here in some union environments

It's more of a contract/union thing in the US, though. In Italy, 'standard' contracts are more or less legislated. Most likely that occurs elsewhere as well, although "it's complicated". Germany, until recently, apparently did not have a minimum wage, something that really surprised me.

Re: FedEx's CEO on McCain, free trade and the tax bias against capital-intensive industries.

#50

Post by mattmaroon »

netcan wrote: post #30
Prrometheus wrote: post #6

That's pretty much the case against Barack Obama: Trade (BIG BIG BIG win for McCain), Taxes (small win for McCain), Subsidies (big win for McCain), Healthcare (big win for McCain: got to address cost, not access), and Energy (slight win for McCain). Barack on the other hand is better on avoiding World War III, Big Brother, and Theocracy. It's a depressing choice.

Question. As a non American, I wonder what brings US to a (relatively) extreme position on Health. Technicalities aside, most places consider health as part of the suite of public responsibilities. Does a significant portion of the opposition to the public assuming responsibility for health also oppose the public assuming responsibility for education? I ask because it seems a close parallel.

We believe that health care is not a right but a privilege. The Constitution does not ensure the right to "life, liberty, the pursuit of happiness, and $10 copays."

Moreover, we believe that almost everything the government does, it does poorly. Schools would be a great case in point.

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