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Re:The Tax Haven That's Saving Google Billions by Anechoic on Thursday October 21, 2010 @11:13AM (#1815756)
run amazing free services (search, Gmail, Google Earth, Google Maps, Google Finance, Google News, Google Voice, Google Reader, Feedburner, many many others). Also, they're internally investing in energy and robotics like the auto-driven cars thing

None of those products/services would be possible but for the government spending taxpayer money to develop the infrastructure behind those services (the internet, roads, GPS, etc).

Re:The Tax Haven That's Saving Google Billions by ataggart on Thursday October 21, 2010 @11:25AM (#1815827)
>None of those products/services would be possible but for the government spending taxpayer money...

This is sloppy reasoning. Just because A contributed in some measure to B does not imply B could only have come about because of the contributions of A, nor does it imply that more of A will yield more Bs.

Further, absent a parallel world in which such different choices were made, one could just as easily argue on economic grounds that the resources confiscated would have been otherwise put to more effective, productive use in satisfying the wants of the common man.

Re:The Tax Haven That's Saving Google Billions by notahacker on Thursday October 21, 2010 @11:58AM (#1816013)
Although Sebastian's original post stopped just short of doing so, it would be equally sloppy to suggest that Google's ability to come up with amazing free (but profitable) services was a consequence of their tax avoidance.
Re:The Tax Haven That's Saving Google Billions by chc on Thursday October 21, 2010 @01:00PM (#1816364)
Only because calling it "tax avoidance" is overspecifying. Google's ability to come up with amazing free services without immediate profitability is a consequence of their considerable post-tax revenue.
Re:The Tax Haven That's Saving Google Billions by Anechoic on Thursday October 21, 2010 @11:53AM (#1815989)
Just because A contributed in some measure to B does not imply B could only have come about because of the contributions of A, nor does it imply that more of A will yield more Bs.

I'm not saying that at all. Google can offer the services that it does because it can ride on the back of the infrastructure developed beforehand and the taxes we pay now will enable future entrepreneurs to provide services utilizing potentially different infrastructure.

Re:The Tax Haven That's Saving Google Billions by adbge on Thursday October 21, 2010 @11:26AM (#1815831)
> None of those products/services would be possible but for the government spending taxpayer money to develop the infrastructure behind those services (the internet, roads, GPS, etc).

I'd argue that the infrastructure would have been built regardless.

Re:The Tax Haven That's Saving Google Billions by Anechoic on Thursday October 21, 2010 @11:58AM (#1816015)
I'd argue that the infrastructure would have been built regardless.

It would likely be very different than the relatively free/open roads, GPS and internet we have today.

The "internet" would likely be similar to the mesh of networks we had back in the '90's (eWorld/AOL, Compuserve, Prodigy, the proposed Microsoft Blackbird/MSN strategy) and who knows if they would have played well with each other.

Roads would be toll roads each with their own restrictions (and I'm sure some enterprising roadway operator would block self-driven cars or charge them higher fees because they good).

And does anyone believe that a privately developed GPS system would be anything but horribly expensive or unreliably? Just look at satellite telephone. Satellite TV and radio have more reasonable cost structures, but they're partially underwritten by advertiser fees.

Re:The Tax Haven That's Saving Google Billions by adbge on Thursday October 21, 2010 @12:27PM (#1816151)
> It would likely be very different than the relatively free/open roads, GPS and internet we have today.

Oh, I'm in violent agreement with you on this one.

"The infrastructure" in my comment is meant to refer to something roughly comparable to our current infrastructure. For example, if the government didn't build roads, something would fill the void of a service that facilitates transportation -- not necessarily roads.

> And does anyone believe that a privately developed GPS system would be anything but horribly expensive or unreliably? Just look at satellite telephone.

Remember, public infrastructure isn't free. No infrastructure, no taxes for infrastructure, more money, which one could choose to spend on an expensive satellite phone. It's certainly not that simple, but that's my general point.

Re:The Tax Haven That's Saving Google Billions by Travis on Thursday October 21, 2010 @11:44AM (#1815931)
Perhaps the infrastructure would have been built, but I think you'd be surprised at the amount of basic fundamental research the government does that enables the infrastructure. Most corporations don't do what the US Feds call "R06" research, meaning there is no current application for the results. Pure research, others might call it.

My current field, public health, is an example. The US Gov't spends billions into research that doesn't lead to tangible products or services. But without it, we wouldn't know that cigarettes are bad, or that heart disease is correlated with red meat consumption.

There are lots of non-infrastructure advantages that exist only because the government has tax money.

Re:The Tax Haven That's Saving Google Billions by adbge on Thursday October 21, 2010 @01:37PM (#1816559)
> There are lots of non-infrastructure advantages that exist only because the government has tax money.

I'd posit that, for many of these advantages, government is not a necessary cause. That is to say, these non-infrastructure advantages can exist independent of government.

> But without it, we wouldn't know that cigarettes are bad...

This is demonstrably false.

"In 1938 a study by a John Hopkins University scientist suggested a strongly negative correlation between smoking and lifespan."[1][2]

"In 1953 scientists at the Sloan-Kettering Institute in New York City demonstrated that cigarette tar painted on the skin of mice caused fatal cancers."[3]

The Sloan-Kettering Institute is by and large funded by the Rockefeller family.[4]

> "or that heart disease is correlated with red meat consumption."

The original research supporting this is, in fact, from a government institute. However, the study has been criticized using an improperly validated food frequency questionnaire[5], which has been shown to have low accuracy.[6][7] A later Harvard study found evidence that it's processed meat that causes heart disease, not red meat.[8]

> The US Gov't spends billions into research that doesn't lead to tangible products or services.

I'm constantly amazed at how many products came out of the space race. Enriched baby food, scratch resistant glasses, advances in water purification, even more aerodynamic golf balls! It's truly marvelous.

[1]http://www.sciencemag.org/cgi/reprint/87/2253/216?ijkey=ecbc...

[2] John Hopkins is a private university, but they receive a not insignificant amount of funding from the government in the form of tax breaks, grants, etc. I think it's fair to say that this study, however, originated in the private sector.

[3]http://en.wikipedia.org/wiki/Health_effects_of_tobacco#cite_...

[4]http://www.smokershistory.com/MSKCC.htm

[5]http://en.wikipedia.org/wiki/Red_meat#cite_note-19

[6]http://en.wikipedia.org/wiki/Red_meat#cite_note-20

[7]http://en.wikipedia.org/wiki/Red_meat#cite_note-21

[8]http://online.wsj.com/article/SB1000142405274870431490457525...

Re:The Tax Haven That's Saving Google Billions by Travis on Thursday October 21, 2010 @02:43PM (#1816873)
I understand your counterpoints. And I'd like to thank you for taking the time to research and cite all of this -- I truly had no idea of the private money behind some of this research.

However, after further consideration I don't think the tobacco-cancer example was a particularly good one for me to bring up. It was highly controversial in the epi/stats community for many years, mainly because RA Fischer (the father of applied statistics) never believed in the validity of the tests. While I'm sure we could each pick studies that backed the public/private side of things, the truth is that there just wasn't a consensus (about cigarettes) until Congress started investigating. So it's probably not the best topic for me to have brought up.

Re:The Tax Haven That's Saving Google Billions by ramanujan on Thursday October 21, 2010 @02:49PM (#1816907)
To state what is perhaps obvious, scientific research and invention flourished before the modern, post WW2 world of state sponsored research.

Given things like the Broad Institue, the Allen Brain Atlas, Microsoft Research, the Google guys' funding of the Singularity Institute, DE Shaw's funding of protein folding, etc. it's pretty clear that billions in private money is spent on R06 research.

It's also not clear that the current system of indentured servitude for grad students and postdocs is optimal. Frankly, in biomedicine, it's the top 10-20 places (and really the top 5) that primarily invent and discover new stuff, as quantified by citation rates[1].

By contrast, a PhD from Directional State is unlikely to do so, and the government funding him or her at the same rate as an MIT scientist is a distortion which is less likely to occur when funding is controlled by individuals rather than politicians with an interest in pork. In the absence of government funding, said marginal PhD candidate would find productive employ as an engineer or scientist in the real economy. (I say all this as a lifelong academic!)

[1] Perhaps the ultimate proof of bibliometry's utility is that it was the inspiration for PageRank.

Re:The Tax Haven That's Saving Google Billions by WalterBright on Thursday October 21, 2010 @01:35PM (#1816550)
Anybody who dissected a smoker knew it was bad for you (ever seen a smoker's lung? I have. Horrific). Even in the 20's cigarettes were called "coffin nails", and doctors routinely advised their patients to quit smoking.

Epidemiological studies have been carried out since the early 1800's.

Re:The Tax Haven That's Saving Google Billions by Travis on Thursday October 21, 2010 @02:46PM (#1816892)
Counterpoint: well into the 1950s, doctors would routinely endorse cigarettes with menthol because they "cleared up your lungs." Even R.A. Fischer, the man who started modern applied statistics, died in 1962 believing that the conclusions drawn from cig studies were at best inconclusive and bad science.

And I'm curious if you could give me examples of a few epi studies that were done before Fisher's time. I was under the impression that he started everything to do with statistics (and that the field didn't really blossom until we could compute the coefficients digitally. Read "The lady tasting tea" for more background on the origins of this stuff).

Re:The Tax Haven That's Saving Google Billions by dennisgorelik on Thursday October 21, 2010 @11:32AM (#1815867)
Judging from this downvoted comment -- this discussion is overtaken by libertarian crowd (which I'm part of). Still it's not a good idea to down-vote comments that you do not agree with. Down-voting is intended for boring/offensive comments which you do not want to see in further discussions.
Re:The Tax Haven That's Saving Google Billions by gruseom on Thursday October 21, 2010 @12:33PM (#1816185)
Downvoting is a legitimate way to disagree when you don't have time or anything useful to say. It's not true that it was intended only for the cases you describe. This is one of those debates (like the decline of HN relative to Reddit) that will never go away despite the fact that it is settled.

That said, I think it's pretty foolish to downvote Anechoic's argument, which is cogent and grounded in historical fact. I don't see how anyone can argue against the role of the public sector in creating major technological infrastructure on a bloody internet forum.

Re:The Tax Haven That's Saving Google Billions by jacoblyles on Thursday October 21, 2010 @03:05PM (#1816975)
I feel fine downvoting comments with high scores that I disagree with, especially if there is no particularly strong argument in them. If they have low score then I leave them alone.
Re:The Tax Haven That's Saving Google Billions by hugh3 on Thursday October 21, 2010 @11:16AM (#1815780)
Personally, I think that if infrastructure (rather than wealth redistribution) were really the main business of government then I wouldn't have any objection to paying taxes.

I'm sure that GOOG pays enough taxes in one way or another to pay for its fair share of the world's roads. This is more than I can say for the bum sitting on the street corner.