Tax Terminology
futureofcapitalism.com

It's interesting to see how the terminology used for tax laws is different depending on which taxpayers are at issue. The left manages to criticizes President Obama for approving "tax cuts for the rich" while at the same time insisting that the middle class not be socked with a "tax increase." If it's a "tax cut" for the "rich," isn't it also a tax cut for the middle class? And if it's a tax increase on the middle class, wouldn't it also be a tax increase on the "rich"?

There was something of a similar debate back in the mid-1990s over a reduction in the planned growth rate of Medicare spending. Democrats called it a "cut," while Republicans insisted that it was an increase, because spending was still going up.

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The Google Shakedown
futureofcapitalism.com

"Google and Cisco to Join White House Effort to Promote Entrepreneurship" is the headline over a Bloomberg News article about Google's announcement that it is "committing up to $100 million to Startup America Partnership member companies to enable entrepreneurs to promote their companies with Google advertising over the next year."

The Google blog post says what the White House announcement doesn't: participants will "receive a $1,000 Google match for $1,000 spent between June 1, 2011 and June 1, 2012." So it's not really free advertising, it's 50% off advertising, on a product for which Google's marginal costs are low and its operating margins are high. I wouldn't be surprised, in fact, if Google actually on a net basis increased its profits on the basis of this "commitment."

Read More...

Tax Terminology
futureofcapitalism.com

It's interesting to see how the terminology used for tax laws is different depending on which taxpayers are at issue. The left manages to criticizes President Obama for approving "tax cuts for the rich" while at the same time insisting that the middle class not be socked with a "tax increase." If it's a "tax cut" for the "rich," isn't it also a tax cut for the middle class? And if it's a tax increase on the middle class, wouldn't it also be a tax increase on the "rich"?

There was something of a similar debate back in the mid-1990s over a reduction in the planned growth rate of Medicare spending. Democrats called it a "cut," while Republicans insisted that it was an increase, because spending was still going up.

Read More...

The Google Shakedown
futureofcapitalism.com

"Google and Cisco to Join White House Effort to Promote Entrepreneurship" is the headline over a Bloomberg News article about Google's announcement that it is "committing up to $100 million to Startup America Partnership member companies to enable entrepreneurs to promote their companies with Google advertising over the next year."

The Google blog post says what the White House announcement doesn't: participants will "receive a $1,000 Google match for $1,000 spent between June 1, 2011 and June 1, 2012." So it's not really free advertising, it's 50% off advertising, on a product for which Google's marginal costs are low and its operating margins are high. I wouldn't be surprised, in fact, if Google actually on a net basis increased its profits on the basis of this "commitment."

Read More...