Re:Nelson testifies cost-plus contracts have been a “plague”...
by Manuel_D on Wednesday May 04, 2022 @02:39PM
(#31264228)
Ditch cost plus contracts and use taxes to curb companies that are just profiting off rent-seeking behavior (like sitting on patents). This was done during WWII, marginal tax rates were set to 100% to discourage war profiteering. Companies would still have an incentive to cut costs, to increase profits. But they'd then be incentivized to reinvest those profits because otherwise those profits would be greatly taxed. Granted, how you'd effectively target these taxes outside of unusual circumstances like a world war might be too complicated to be feasible.
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Re:Nelson testifies cost-plus contracts have been a “plague”...
by treeman79 on Wednesday May 04, 2022 @02:47PM
(#31264320)
This is also the source of the weird health insurance is provided by companies came from.
Paying for peoples medical care became an alternative way to compensate people more to avoid absurd taxes. Medical care used to be a lot cheaper so it wasn’t a big expense.