Jake Says - "Cut Taxes"

[shri]

I can normally figure out what Jake is talking about ...

This is one of those rare exceptions. Or am I missing an inside joke?

Cutting taxes instead of investing these savings to support the deficit spending of the United States government, which is what we actually do with the money, would stimulate economic activity.

But it would do more than that. It would give seven million people greater leisure to devote their intellectual powers to innovation in millions of ways that we cannot really imagine at the moment. It is a far better way of encouraging innovation than taking people’s money from them, and squandering it on the false innovation that government invariably favours.

Given the small pool of people who pay taxes, I have no clue how a tax cut would inspire seven million people to devote intellectual powers to innovation.

I guess I do need to spend more time talking to my KMB bus drivers to get their opinion on this.

Try this for an idea: Hong Kong’s fiscal surplus gives us the ability to cut taxes and spur innovation | South China Morning Post

[UK/HKboy]

I am not sure how he would focus tax cuts on innovation either. I thought most people would use those tax cuts to buy the latest phone or handbag in HK...

However, as someone who has thought about starting a business, having tax cuts really don't mean too much to me. If i am paying tax, i would assume my business is profitable/successful in the first place and I would have no problems paying a fair tax.

It would be a much bigger incentive if they gave more help to start businesses (not just start ups). Maybe financial grants, subsidised office space, equipment etc. There would need to be conditions met so it's not just people taking advantage.

From my consideration, it was the thought of spending at least 200-300k on renting and renovating a space and another 200-300k on equipment to start. Then if it failed, i would have lost my life savings.

[shri]

I thought most people would use those tax cuts to buy the latest phone or handbag in HK...

I think this is mythical ... even Joseph Yam said "I heard people went and bought iPads" ... f'ing shameful for someone at his level to be using "I heard". The guy has access to all kinds of data to make an authoritative statement.

In our case any cash incentive would have just gone into offsetting an expense - insurance, school fees, vehicle registration... whatever the next major expense would have been. I suspect this is the case for majority of the families. Perhaps not for single consumerists... but the vast majority would have used it for their next batch of bills.

[shri]

Original Post Deleted

And neither do they prevent seven million people from coming up with hallucinogenic innovations.

[Viktri]

I think this is mythical ... even Joseph Yam said "I heard people went and bought iPads" ... f'ing shameful for someone at his level to be using "I heard". The guy has access to all kinds of data to make an authoritative statement.

In our case any cash incentive would have just gone into offsetting an expense - insurance, school fees, vehicle registration... whatever the next major expense would have been. I suspect this is the case for majority of the families. Perhaps not for single consumerists... but the vast majority would have used it for their next batch of bills.

As my wife's family lives in public housing, I heard how many people spent the handout from the government. Still anecdotal info. But most of the ones who talked about it spent it in frivolous purchases like phones after it was announced and before receiving the money...

[shri]

Because talking about using your tax allowance to pay your electric bill is only things that poor people do.

[freeier]

I think this is mythical ... even Joseph Yam said "I heard people went and bought iPads" ... f'ing shameful for someone at his level to be using "I heard". The guy has access to all kinds of data to make an authoritative statement.

In our case any cash incentive would have just gone into offsetting an expense - insurance, school fees, vehicle registration... whatever the next major expense would have been. I suspect this is the case for majority of the families. Perhaps not for single consumerists... but the vast majority would have used it for their next batch of bills.

hmmm..
- this is a surprise gift from someone unexpected
- your regular cashflows and spending should have been planned and taken care of
- new money, new toy. nothing wrong

so for guys that need day to day assistance for their spending, your statement is correct
but for a responsible person that spends within his/her means and have everything plotted out, extra money is what it is, extra money. i think nothing wrong with that...