Timmy elsewhereApril 13, 2013 Tim WorstallTimmy Elsewhere9 CommentsAt the ASI. Why do some nutters insist that the value a company offers is defined by its tax payments? previousDr. Kermit Gosnell and partial birth abortionnextThose vast power supply profits 9 thoughts on “Timmy elsewhere” Edward Lud April 13, 2013 at 10:19 am Because we exist for each other’s sake. So they would say. And taken to its conclusion, this doctrine means that the productive are there to be milked. Or bilked. Ian B April 13, 2013 at 10:36 am Because they don’t believe factory gate output is value; they measure value in terms of the labour input and the degree to which the company creates “real value”, which is produced by the State, via taxation. Effectively, they see the production of goods (how we evil capitalists measure value) as destructive of value; expending labour on mere fripperies. In that sense, they’re virtually physiocratic. So, the State’s job is to create some value by reclaiming moneys from the producers of, and consumers of, those fripperies. Surreptitious Evil April 13, 2013 at 2:09 pm Edward and Ian are over thinking. They do it because it suits their narrative. David April 13, 2013 at 8:08 pm For the workers and shareholders the value of a company is how much they get paid!!! David April 13, 2013 at 8:08 pm PS I would be very happy if my boss were avoiding tax and paying me more. James April 13, 2013 at 9:09 pm Well I would be very happy if companies avoided taxes and reduced their prices. Not sure if that ever happens in reality though. bloke in spain April 14, 2013 at 10:13 am ” Not sure if that ever happens in reality though.” The one person in the entire UK economy who’s never been asked “You wanna give me cash, I’ll knock the VAT off” Wow! Martin Davies April 14, 2013 at 1:02 pm Never had the VAT knocked off, have had 10% discount for cash. Whether the tradesman then didn’t put it through the books I wouldn’t know. ken April 14, 2013 at 5:29 pm For firms that are subject to taxation, what is true is that the payment of taxes indicates that the firm is engaging in activities that are more value creating than if it were in a perfectly competitive market. Under perfect competition, firms produce no economic profit, they just cover their costs (including opportunity cost). Such firms will see employees paying taxes, but there will be no surplus at the corporate level that results in the payment of tax. This is undesirable not because of the tax thing but because no surplus is being created. I’ve always wondered if this was the problem in Japan, where te latest figures show only 26.5% of firms are profitable for tax purposes: http://www.nta.go.jp/kohyo/tokei/kokuzeicho/hojin2011/pdf/h23_houjin.pdf Table 3. Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.