View Single Post
  #45  
Old 11-15-2007, 12:39 AM
dazraf69 dazraf69 is offline
Senior Member
 
Join Date: Dec 2005
Location: Bay Area
Posts: 1,177
Default Re: Warren Buffet\'s Stance on Taxes

I think DC is implying that this would not be a one shot deal as in the sense of a "rebate". His suggestion is correct. There is a correlation between your cost and the amount you are willing to pay. The effects are felt as a shift in the form of a general trend.

An example would be, say next year and every year thereafter you get the rebate. The first year you give it as a bonus. Eventually you find that a better use of it would be to offer it as a bonus to a new employee of higher skill. Eventually the average 50k starting salary averages upto 54k starting salary. The initial rebate becomes a reinvestment as opposed to a cost.
Reply With Quote