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118

Intangibles and the Rise of Inequality

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Haskel, J. and Westlake, S. (2017). Intangibles and the Rise of Inequality. In Haskel, J. and Westlake, S. Capitalism Without Capital: The Rise of the Intangible Economy. Princeton University Press, pp. 118-143

118

[...] the rise of intangibles might be expected to increase inequality both of wealth and income. Increasingly intangible intensive firms will need better staff to create synergy with their other intangible assets: better managers, better movie stars, better sports heroes. Firms will screen them more thoroughly and pay them more handsomely. [...]

so many normative assumptions concealed within the word "better". better at what? at extracting rent? and what the fuck does screening them more "thoroughly" mean? like putting up more and more arbitrary barriers to make managers feel like they're prestigious and selective and only hire the "best"?

—p.118 by Jonathan Haskel, Stian Westlake 1 year ago

[...] the rise of intangibles might be expected to increase inequality both of wealth and income. Increasingly intangible intensive firms will need better staff to create synergy with their other intangible assets: better managers, better movie stars, better sports heroes. Firms will screen them more thoroughly and pay them more handsomely. [...]

so many normative assumptions concealed within the word "better". better at what? at extracting rent? and what the fuck does screening them more "thoroughly" mean? like putting up more and more arbitrary barriers to make managers feel like they're prestigious and selective and only hire the "best"?

—p.118 by Jonathan Haskel, Stian Westlake 1 year ago
140

This intensifies what policymakers call "tax competition": the idea that businesses and owners of capital will shop around for the most favorable tax policies. This makes it harder for governments to increase taxes and exacerbates the problem that led to lower taxes on capital in the first place.

[...] because it is unusually internationally mobile, intangibles increase tax competition, which makes it harder for governments to reduce inequality by taxing capital more.

on the rise of intangibles being innately linked to rising incidence of shifting tax jurisdictions

—p.140 by Jonathan Haskel, Stian Westlake 1 year ago

This intensifies what policymakers call "tax competition": the idea that businesses and owners of capital will shop around for the most favorable tax policies. This makes it harder for governments to increase taxes and exacerbates the problem that led to lower taxes on capital in the first place.

[...] because it is unusually internationally mobile, intangibles increase tax competition, which makes it harder for governments to reduce inequality by taxing capital more.

on the rise of intangibles being innately linked to rising incidence of shifting tax jurisdictions

—p.140 by Jonathan Haskel, Stian Westlake 1 year ago