Quotulatiousness

June 9, 2010

QotD: The transition curve of higher taxes

Filed under: Britain, Economics, Government, Quotations — Tags: , , — Nicholas @ 17:21

The point where things start to go wrong seems to be about 50%. Above that people get serious about tax avoidance. The reason is that the payoff for avoiding tax grows hyperexponentially (x/1-x for 0 < x < 1). If your income tax rate is 10%, moving to Monaco would only give you 11% more income, which wouldn't even cover the extra cost. If it's 90%, you'd get ten times as much income. And at 98%, as it was briefly in Britain in the 70s, moving to Monaco would give you fifty times as much income. It seems quite likely that European governments of the 70s never drew this curve.

Paul Graham, “Why Startups Condense in America”, 2006-05

Glee as piracy central

Filed under: Law, Media — Tags: , , , — Nicholas @ 13:13

Christina Mulligan points out that a popular mainstream TV show is not only encouraging illegal behaviour, it’s actually indulging in it:

The fictional high school chorus at the center of Fox’s Glee has a huge problem — nearly a million dollars in potential legal liability. For a show that regularly tackles thorny issues like teen pregnancy and alcohol abuse, it’s surprising that a million dollars worth of lawbreaking would go unmentioned. But it does, and week after week, those zany Glee kids rack up the potential to pay higher and higher fines.

In one recent episode, the AV Club helps cheerleading coach Sue Sylvester film a near-exact copy of Madonna’s Vogue music video (the real-life fine for copying Madonna’s original? up to $150,000). Just a few episodes later, a video of Sue dancing to Olivia Newton-John’s 1981 hit Physical is posted online (damages for recording the entirety of Physical on Sue’s camcorder: up to $300,000). And let’s not forget the glee club’s many mash-ups — songs created by mixing together two other musical pieces. Each mash-up is a “preparation of a derivative work” of the original two songs’ compositions — an action for which there is no compulsory license available, meaning (in plain English) that if the Glee kids were a real group of teenagers, they could not feasibly ask for — or hope to get — the copyright permissions they would need to make their songs, and their actions, legal under copyright law. Punishment for making each mash-up? Up to another $150,000 — times two.

I’ve never watched Glee, but I find this quite an amusing juxtaposition, as the corporate owners of Fox are among the loudest and most active copyright enforcement goons around.

Confused by international finance? Monty can help

Filed under: Economics, Europe, France, Germany, Government, USA — Tags: , , — Nicholas @ 11:35

If you’re finding the up-then-down-then-under-the-table performance of your investments unfathomable, you’re probably wondering who can explain it all in a way that makes perfect sense and allows you to figure out the best way to handle your personal finances. If you find such a savant, let me know.

For the “real” story about why the markets are doing an imitation of an unstable personality on conflicting medication, here’s Monty’s “Wednesday Financial Briefing”:

Nicholas Sarkozy and Angela Merkel are still waging war against “the speculators” who had the temerity to point out that Euorpean finances were a God Damn mess. A spokesmen for the holders of European sovereign bonds warned the leaders that they were “teasing the gorilla in the monkey-house”. Sarkozy was heard to say that he farted in their general direction and that their fathers smelt of elderberries. Chancellor Merkel only muttered darkly, “I will break you!”

Interbank loans at Spanish banks are drying up. This tightens credit and leads to busted bond auctions. “Fitch can kiss my ass!”, said an unnamed source at Banco Santander who blames the problems on Fitch’s recent downgrade of Spanish debt. Just to show how not-broke they are, Santander bought back their stake in their Mexican unit from Bank of America for $2.5 billion. When asked if this was a wise move given their weak balance-sheet, a Santander representative lowered his trousers and mooned the press-pool.

US debt will climb to 19.6 trillion by 2015, according to a Treasury report to Congress. Tim Geithner assured everyone that, in true Keynesian fashion, every dollar of debt translates directly into GDP growth. Somehow. When pressed on the issue, Mr. Geithner began to cry and had to be excused to the lavatory to pull himself together.

Book written in 1944 tops Amazon bestseller list

Filed under: Books, Economics, Government, Media, Politics — Tags: , , — Nicholas @ 07:57

Admittedly, this is an updated and supplemented version of the original text, but it’s still impressive to see it selling so well.

Update: American Digest has pages from the picture book version:

A Canadian Liberal-Democrat party?

Filed under: Cancon, Politics — Tags: , , , , — Nicholas @ 07:43

Andrew Potter pokes fun at the widely rumoured merger discussions that may or may not result in a combination of the Liberals and the New Democrats:

So here’s what I think, for what it matters to anyone: It’s a stupid idea. Not just stupid as in don’t-eat-that-fifth-taco stupid, but deeply, profoundly, moronic. If it were to come to pass, the only, and I mean only, beneficiaries would be the Conservatives. The NDP would lose, the Liberals would lose, and, more than anything, Canadians would lose.

[. . .]

The problem with the Liberals is not that their voter base it is divided, it is that their voter base has left them. And the reason their voter base has left them is because the Liberals have been acting like humungeous bozos for most of this decade. It is really not much more complicated than that. The former Natural Governing Party transformed itself into the Party of Humungeous Bozos, and if there is one thing Canadians have shown over the years is that you can’t get elected if you are a humungeous bozo. You can be an arrogant jerk (Trudeau), a slimeball (Mulroney), a gangster (Chretien) or a paranoid control freak (Harper), but the Canadian body politic is powerfully immune to bozos.

While I wouldn’t say it’s impossible, I’d expect the NDP rank-and-file to object strenuously to anything more than a tactical agreement to avoid running directly against the Liberals. The NDP, although I disagree with much of what they stand for, at least do believe in something. The only thing the Liberals stand for is their belief that they should be running the country.

Update: Steve Janke thinks it could be an ugly, ugly scenario indeed:

And there are plenty of senior Liberals utterly appalled at the idea of a merger, I think because they realize the NDP, though smaller, is more ideologically pure, and that the NDP would pull the merging Liberals leftward (though the NDP purity would itself be diluted, something the NDP membership would be worried about, and would probably struggle hard against). The new party would be much more NDP than Liberal.

These appalled Liberals would fight hard against a merger at a Liberal convention, and it seems to me that the Liberal Party could tear itself apart in a very ugly and public way.

Let’s say the merger amendment fails. What then? We could see a chaotic abandonment of the Liberal Party by disaffected Liberals (remember, I dialled the chaos way up on the scenario-a-tron). As of yesterday, the existence of Liberal-NDP merger talks is public knowledge. Even if it isn’t true, people now believe it to be true. The pro-merger Liberals in the rank-and-file might not accept a failure of those talks or a failure to accept a constitutional amendment to make a merger official. If they see their dream snatched away, we could see large numbers of Liberals tearing up their membership cards and switching parties, especially if they are led by someone like Bob Rae tearing up his membership card first.

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