Netflix Posted Biggest-Ever Profit in 2018 and Paid $0 in Income Taxes

Post by JamesBarney » Tue, Feb 12, 2019, 12:48 AM UTC

blumenko wrote: post #510

JamesBarney wrote: post #492

Earlier quoted context omitted.

This is only true of dividends. But I don't think it wasn't true of stock buybacks. Also there is plenty of business income that is not double taxed because it isn't run through a C Corp. Then in regards to incentives. We already have interest rates to adjust the knobs of investment versus consumption. Capital gains is just a way to make the tax system less progressive.

Stock buybacks come from profits which are taxed, and those who sell the shares back to the company also have to pay capital gains tax. And S corp income is taxed at personal income rates, not capital gains rates (except for some ridiculous 20% rebates in some situations in the new tax law (but is still higher than capital gains)).

You're right. I had a brain fart forgetting that buybacks are taxed as profit.

Post by druddha » Tue, Feb 12, 2019, 8:53 PM UTC

natalyarostova wrote: post #266

druddha wrote: post #64

Earlier quoted context omitted.

Can you explain why you think that analogy is contrived?

I think the argument is contrived because loop holes for murder don't exist for a reason, which is that the electoral connection -> legislative process essentially leaves zero room for there to be such a loophole. In fact, concepts such as the intended meaning of the law mean that even if you hacked some edge case in the written law, you'd still go to jail. Conversely, tax law operates under a general regime where th…

> I think the argument is contrived because loop holes for murder don't exist for a reason, which is that the electoral connection -> legislative process essentially leaves zero room for there to be such a loophole.

Loopholes do exist for murder: for instance, self defense. The Trayvon Martin case is an example of this. The loophole exists for valid reasons, but it's often taken advantage of to circumvent the spirit of the law.

> In fact, concepts such as the intended meaning of the law mean that even if you hacked some edge case in the written law, you'd still go to jail.

Can you provide evidence that this applies only to murder and not to tax evasion?

> Conversely, tax law operates under a general regime where the expected and encouraged behavior of firms is to do their best to avoid paying taxes.

I'll agree it's expected, but I think you'd have a hard time finding a politician or member of the working class who would say firms are encouraged to avoid paying taxes.

I agree that it's not a perfect analogy, but I don't think it's fair to dismiss it entirely.

Re: Netflix Posted Biggest-Ever Profit in 2018 and Paid $0 in Income Taxes

Re: Netflix Posted Biggest-Ever Profit in 2018 and Paid $0 in Income Taxes