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How the Rich Reap Huge Tax Breaks From Private Nonprofits

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Re: How the Rich Reap Huge Tax Breaks From Private Nonprofits

#261

Earlier quoted context omitted.

> We don't have commonly agreed upon rights and entitlements You keep moving the goal posts. We have enough of a starting point with the UN charter of rights and freedoms. > If we had the universal alignment you would talk about, sure we could just put the mathematicians and being counters on the job, but that's not the case. It's the case that for a lot of things we know the best policies for many things. More compe…

I don't think I'm moving the goal posts, just addressing points as you introduce them to the conversation. To be honest, I don't really understand your position. It seemed like you were claiming that Society has already decided what's best and now you say that the will of the people be damned. Who is the 'we' that knows what's best and how do you contrast that with the will of the people. >We have very good, very fle…

> I don't think I'm moving the goal posts, just addressing points as you introduce them to the conversation.

Those things are not mutually exclusive. You absolutely seem to be moving the goalposts. You say your introducing points but each response is "what about the next issue down the line" i.e. moving the goalposts.

> To be honest, I don't really understand your position.

That there are best practices for every field of government, and they should be followed instead of politicians going by what they feel.

You're focusing on semantics and being for example "well define best", and I just don't see that as being a particularly productive avenue of conservation.

You want to try and make the point that everything is subjective, I guess, but it isn't. Again, there are best practices. Best as in the dictionary definition of the word. Context would be, as said, ensuring the UN charter of rights and freedoms is being implemented correctly (should I expect a request to define "correctly"?) It wouldn't be tyranny for a government to rule according to expert advice and suggestion, it would be competence.

If you really want to take the discussion into arguing about different people's definitions for best (or 'reasonable', or whichever word quote me saying), then we don't have anything further to discuss. It's not a discussion I find value in or have an interest in having.

Re: How the Rich Reap Huge Tax Breaks From Private Nonprofits

#262

Earlier quoted context omitted.

> because it implies that there's some entity out there that's actually good at spending money No, this is the weird framing. As if the money has to go to some entity other than the individual that earned it. The government is taking money from individuals for their supposed benefit.

Why take your property taxes to educate our nation's children when you don't even have children? Am I unfairly framing your argument? Society (that's us) want things for society and it turns out they cost money. We would love to pay for these things with razor-like efficiency but we live in an imperfect world. (The "waste" however still goes into someone's wallet and can be in turn spent at a local restaurant or on g…

> Why take your property taxes to educate our nation's children when you don't even have children?

Because you have to deal with and eventually depend upon other people's kids.

Re: How the Rich Reap Huge Tax Breaks From Private Nonprofits

#263

Earlier quoted context omitted.

I don't think I'm moving the goal posts, just addressing points as you introduce them to the conversation. To be honest, I don't really understand your position. It seemed like you were claiming that Society has already decided what's best and now you say that the will of the people be damned. Who is the 'we' that knows what's best and how do you contrast that with the will of the people. >We have very good, very fle…

> I don't think I'm moving the goal posts, just addressing points as you introduce them to the conversation. Those things are not mutually exclusive. You absolutely seem to be moving the goalposts. You say your introducing points but each response is "what about the next issue down the line" i.e. moving the goalposts. > To be honest, I don't really understand your position. That there are best practices for every fie…

>>You say your introducing points but each response is "what about the next issue down the line" i.e. moving the goalposts.

This is generally how conversations or debates go, when people don't immediately agree with you. Asking what about X? Moving the goalposts is quite different. If I said I will believe you if you if you gave an example of Y, then when you showed me Y, asked for Y+Z. In this conversation, I havent set any goals, just asked questions and made counterpoints.

In general think maybe you are misunderstanding me, I absolutely agree there is a best way to go about a given thing. I dont see how you can think what goverment should be doing isnt particularly relevant.

I personally think that many articles of the UN declaration of human rights are garbage, and would oppose my government implementing it in practice.

Again, government competence depends on what you want the government to do.

My fundamental point was people don't agree on what the government should do. It sounds like you have walked this back, so I dont think we have much left to talk about.

We aren't going to hash out an agreement of what governments Should do over HN.

Re: How the Rich Reap Huge Tax Breaks From Private Nonprofits

#264

Earlier quoted context omitted.

> I don't think I'm moving the goal posts, just addressing points as you introduce them to the conversation. Those things are not mutually exclusive. You absolutely seem to be moving the goalposts. You say your introducing points but each response is "what about the next issue down the line" i.e. moving the goalposts. > To be honest, I don't really understand your position. That there are best practices for every fie…

>>You say your introducing points but each response is "what about the next issue down the line" i.e. moving the goalposts. This is generally how conversations or debates go, when people don't immediately agree with you. Asking what about X? Moving the goalposts is quite different. If I said I will believe you if you if you gave an example of Y, then when you showed me Y, asked for Y+Z. In this conversation, I havent…

> In general think maybe you are misunderstanding me

I'm not, I just don't see value in the way you're approaching this.

I'm just going to leave it at that.

Cheers.

Re: How the Rich Reap Huge Tax Breaks From Private Nonprofits

#265
post #152

Earlier quoted context omitted.

The games played by the wealthy and well-advised are largely within the gray areas of tax code buried between legal avoidance and illegal evasion[1]...in other words, certain sophisticated behavior remains "legal" if the IRS never gets an opportunity to audit and pursue litigation against. Herein lies the moral hazard bullshit. To tilt these game-theoretic bets overwhelmingly in favor of the wealthy, assert continuou…

Right, but again, tax revenue hasn't change over time as a percentage of GDP. The government is taking in the same percentage as it was during WW2. And if you look at the percentage of all taxes paid by the wealthy, it's actually grown over time (become more progressive). Of course that doesn't mean that some rich end up paying less than expected, but overall, the data doesn't support the idea that the rich overall a…

All this talk of "data" is quickly feeling unmotivated without an ounce of cite.

To be sure, use of the terms "progressive" and "substantial" in context here is quite misleading at face value, and every time you handwave this federal receipts as a percentage of GDP metric as if it somehow magically supports an argument that the wealthy are paying their equitable and sustainable share, it comes off even more as disingenuous.

We need only disaggregate this total metric and recognize a long declining trend in tax receipts on corporate income as a percentage of GDP[1] to see how such an argument falls flat on its face.

Furthermore, we can see from the CBO report previously cited[2] that at the individual income level, the largest gap in tax liabilities by a massive margin is from underreporting of business income, i.e. flow-through from partnerships, S corps, estates and trusts, rent and royalty, farm, and nonfarm proprietor income...and that doesn't even account for the sophisticated evasion that's happening right under our noses as previously mentioned.

So if total receipts remain flat (as you point out) while receipts attributable to corporate income are clearly on a declining trend, it begs the question: who/what has been shouldering the implied delta?

It should come as no surprise that corporate profits after tax is strongly correlated to public debt as a percentage of GDP[3], of course, with a grift catalyst that comes along every few decades that allows the cart to lead the horse for truly outsized profits before the inevitable reversion to the mean expensed by even more public debt.

It should also be unsurprising that when public debt to receipts ratio[4] is levered over 6x with interest rates as high as they are (never mind the $82+ billion and snowballing negative carry by the Fed[5]), negative sentiment brews as private wealth locks in exit liquidity while the rest of the public braces to "socialize losses" in the long run.

[1] https://fred.stlouisfed.org/graph/?g=17rUd

[2] https://www.cbo.gov/publication/56467#_idTextAnchor018

[3] https://fred.stlouisfed.org/graph/?g=17s68

[4] https://fred.stlouisfed.org/graph/?g=17saE

[5] https://fred.stlouisfed.org/series/RESPPLLOPNWW

Re: How the Rich Reap Huge Tax Breaks From Private Nonprofits

#266

Earlier quoted context omitted.

> The big difference is that I can choose not to pay a company I don't like, and that's fine. Were capitalism regulated, I'd agree with you - however the reality is that capitalism these days has devolved into monopoly and rent seeking: Unhappy with your phone and especially internet provider? Good luck finding a new one, in most cases there is no competition at all or it's just as bad. Unhappy with your social netwo…

>Unhappy with your social network, say because there are too many Nazis and conspiracy theorists running rampant? Bad luck, no federation requirement means you'll lose all your followers and they'll lose you. I don't know how a government would enforce this. Nor if we want them to. Yes, you will and arguably should lose your followers if you move sites, and that's because your followers are passive browsers who don't…

> I don't know how a government would enforce this. Nor if we want them to.

Mandate that services over a certain user threshold expose open interfaces to which competitors can bind. That has worked reasonably well in banking and telecommunication.

> Also kind of funny that you mention federation as an implciit solution and then complain about email.

Unlike Mastodon federation or SEPA bank accounts, there is no legal requirement for the old service provider to assist in moving accounts, and I was talking about Googlemail which ties an entire person's identity across a multitude of services to one account. The person in my scenario lost everything from their mail account to the apps bought on their smartphone.

> Having a better service isn't grounds for a monopoly alone, that's just plain ol' competition.

Agreed but there have been many cases where the "better service" just bought up the competition. Adobe is the best example, and up next I'd classify Atlassian. Both of their respective stacks still show the signs of integration after decades.

Re: How the Rich Reap Huge Tax Breaks From Private Nonprofits

#267
post #152

Earlier quoted context omitted.

Right, but again, tax revenue hasn't change over time as a percentage of GDP. The government is taking in the same percentage as it was during WW2. And if you look at the percentage of all taxes paid by the wealthy, it's actually grown over time (become more progressive). Of course that doesn't mean that some rich end up paying less than expected, but overall, the data doesn't support the idea that the rich overall a…

All this talk of "data" is quickly feeling unmotivated without an ounce of cite. To be sure, use of the terms "progressive" and "substantial" in context here is quite misleading at face value, and every time you handwave this federal receipts as a percentage of GDP metric as if it somehow magically supports an argument that the wealthy are paying their equitable and sustainable share, it comes off even more as dising…

We need only disaggregate this total metric and recognize a long declining trend in tax receipts on corporate income as a percentage of GDP[1] to see how such an argument falls flat on its face.

Speaking of handwaving, showing that corporate receipt are down a percentage doesn't negate the argument whatsoever because: 1) corporations aren't people, 2) corporate taxes make up a small part (6%) of total tax burden.

Take a look at personal income taxes which are 42% of government revenues.

https://taxfoundation.org/top-1-percent-pays-more-taxes-bott...

The percentage of all income taxes paid by the top 1% has increase from ~20% in 1990 to 35% in 2011.

The tax burden has gotten more progressive over time, not less.

Re: How the Rich Reap Huge Tax Breaks From Private Nonprofits

#268

Earlier quoted context omitted.

Do you expect qualified people to work for these charities for free? 100k is not a lot in SF, and it's very likely the people in those roles could make multiples more at private organizations.

1) how do you know they're "qualified"? Which leads to... 2) the Civil Service has rigorous rules on fair, non-discriminatory hiring. Do these orgs? 3) I don't know how you could know "it's very likely the people in those roles could make multiples more at private organizations." For all we know, they're people who've never had a private sector job in their lives. 4) Why can't the SF civil service do these functions?…

> What incentive do these orgs have to actually solve the problem, when their very existence depends on it continuing?

This is true of government as well. After all there’s some middle management pencil pusher tasked with whatever job, and if it’s a problem getting worse they can get more resources, hire more people, move up the ranks, no? That might be easier and a better way of growing their career than solving the problem!

Re: How the Rich Reap Huge Tax Breaks From Private Nonprofits

#269
post #25

Earlier quoted context omitted.

I know someone who looked into this and since the facility was a business 5 days a week & a church on Sunday they gave him a 1/7 tax credit. OTOH it made sense, as all he had to do was find a congregation that wanted to meet there.

That seems like a reasonable, legal example. The Houston Chronical found ones that are unfortunately legal, but not reasonable...like: https://archive.is/SPY8K

It’s a ridiculous statute in my opinion, but this is also silly:

> That means Copeland’s church gets a pass on what would otherwise be an annual property tax bill exceeding $150,000 — money that other local taxpayers must backfill to cover the cost of schools, police and firefighters.

How on earth does this make sense? It’s not like there’s some divine requirement that an exact number of dollars must be paid and now everyone else is on the hook. Taxing rich people more is convenient and mostly accepted but come on, it’s 1 person, they aren’t using more schools/police/whatever.

Re: How the Rich Reap Huge Tax Breaks From Private Nonprofits

#270
post #10

Earlier quoted context omitted.

The bigger problem is a fear of public spending because of perceived incompetence. The stigma comes from a time when only governments had run big bureaucratic systems. Now we can see there is little difference between public and private bureaucracies except for a lack of oversight on the latter. Still the stigma remains and all public spending is filtered through a profit making entity.

I see a lot of propaganda expended on convincing the voting public of this "public incompentence", almost as if someone is paying to maintain this status quo.

The history of the idea is quite interesting. It all start in the post-WWII period, right after the RAND Corporation was created to retain talent amid the US armed forces demobilization. Shortly after, a bunch of government agencies were being created and there was no abstraction defined to impose constraints on how they should operate and be funded, after some initial success with RAND's economists' policy analysis during the Kennedy administration, it began to spread to newly formed agencies and thus the language of efficiency gained weight. Then the Chicago school comes in, eventually antitrust starts to be dismantled with arguments like "if they raise prices too much, then competitors will come and eat their lunch", yadda yadda, completely ignoring entry barriers and today due to the flexibility of the language you have actors using government ineptness as a basis to decrease or halt any public spending when it suits them. It's a powerful way of assessing resource allocation, but it can't be the only one.
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