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Cake day: July 16th, 2023

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  • It was always short sighted tax policy. We’re just living with the blowback.

    But in 1954, apparently intending to stimulate capital investment in manufacturing in order to counter a mild recession, Congress replaced the straight-line approach with “accelerated depreciation,” which enabled owners to take huge deductions in the early years of a project’s life. This, Hanchett says, “transformed real-estate development into a lucrative ‘tax shelter.’ An investor making a profit from rental of a new building usually avoided all taxes on that income, since the ‘loss’ from depreciation canceled it out. And when the depreciation exceeded profits from the building itself—as it virtually always did in early years—the investor could use the excess ‘loss’ to cut other income taxes.” With realestate values going up during the 1950s and ’60s, savvy investors “could build a structure, claim ‘losses’ for several years while enjoying tax-free income, then sell the project for more than they had originally invested.”

    Since the “accelerated depreciation” rule did not apply to renovation of existing buildings, investors “now looked away from established downtowns, where vacant land was scarce and new construction difficult,” Hanchett says. "Instead, they rushed to put their money into projects at the suburban fringe—especially into shopping centers.

    http://archive.wilsonquarterly.com/in-essence/why-america-got-malled














  • In general, my take is that people should be entitled to a warning, but if they still want to do something to themselves that is a really bad idea and the impact is pretty much on them, well…

    This literally is the status quo.

    The problem is that the impact is not only on them. There are people who are immunocompromised, particularly the elderly and cancer patients undergoing chemo, and children too young to get various vaccines, and they rely on herd immunity to avoid getting these diseases that might kill them or get them seriously ill or complicate their medical situation. So it’s specifically societies most vulnerable populations that are harmed, which is bad, not to mention the possibility that with enough spread the viruses could mutate and get around vaccines which would threaten everyone else.

    And then you have to weigh those real harms against…what, exactly? People just…don’t want to? Because of their incorrect belief that the vaccines are more harmful than helpful?

    The government exists to handle externalities like contagion and pollution and caring for vulnerable groups. Arguably, we should be a lot harsher on requiring vaccinations, like how we were on polio. But we aren’t.