[ExI] self driving truck

[spike]

>… On Behalf Of Adrian Tymes
Subject: Re: [ExI] self driving truck

 

On Oct 31, 2016 8:01 AM, "spike" <spike66 at att.net <mailto:spike66 at att.net> > wrote:


>>… Should the Federal government try to institute a tax based on what we own, capital flees along with the owners of that capital…

>…By that argument, why does money not flee the state & local?

Because we can’t run off with our house on our backs.  But here is an interesting take on that question.  If there are indications that a state is going to go open-loop taxing property, the logical thing would be to take a maximum loan on the property and let the bank hold the risk.  Perhaps that explains why in some areas the banks own most of the equity.

California is an interesting case.  They capped property tax structure in the state constitution, then required a 2/3 vote to change that structure.  They did that back in the 1970s when our current governor was governor (is that cool or what?)  Since then, a number of bills have been introduced to change the requirement for a 2/3 vote to a simple majority, but they anticipated this and wrote it such that any law to change the 2/3 rule to anything else requires passage by 2/3 vote.  So… they tried to change the 2/3 rule to change the 2/3 rule, and discovered that it too requires 2/3 majority.  And so on.  You can’t get 2/3 of the senators to agree the sun will rise tomorrow.

>…Also, I recall that argument used against higher federal taxes and it mostly not coming true.  Wealth goes where it will make more wealth - even if the taxes are higher, but not high enough to cancel out that increase…

Ja!  That is a cool feature of capital.  It goes where its reproductive capacity is greatest.  So, governments must make their nation, state, county or city a great place for capital to breed, and capital will come there and breed.  Take Ireland for instance.  Well done, me lads!  My St. Patrick guard your asses wherever you go.

>…(As for conversion to gold & silver - that's just transfer of wealth to those selling gold & silver.  Only so much is dug up per year; price increases can't make new mines appear, and only long term increases can make marginally unprofitable mines profitable.)…

Ja, gold is mobile, property is not.

On that score, I notice a lot of Chinese are buying up homes in the neighborhood.  Their government damn sure can tax them on whatever they have.  So… Chinese businesswomen make sure they have a safe landing strip somewhere else, preferably in California where the property taxes are high but controlled.  I see it everywhere around me: expensive neighborhoods were many of the houses are apparently not occupied but are not on the market.  The yards are maintained to perfection by yard services, the curtains drawn and never moved, not a trace of evidence anyone ever goes inside.  

My theory: those homes are owned by foreigners who are busy making money and keeping that in case China decides it is time for the commies to flex their muscle and have another great leap forward.  If that happens we can envision once-empty neighborhoods crowded with Chinese people with money up the kazoo.  This leads to another problem.  Suppose you are a yard service working for a freshly-minted Chinese expatriate with money up the kazoo.  She pays you generously, but you know where that money has been.  Now what?

spike

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