Subnostr

so i'm thinking this allegory could also apply to tax credits to farming. I spoke with a farmer recently who mentioned that they pay 30-50% tax on net income. So the incentive is to buy equipment every year that can reduce their tax to zero.

At a certain point, however, they don't need new equipment. And why buy new equipment when the old equipment is perfectly fine.

there is a stiff penalty if they try to build wealth outside of their farm.

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Discussion

Silberengel 1y ago

Farming is also essentially single-payer, as most farmers subsist off of a combination of subsidies and tax write-offs. If they do have private customers, it's often someone who has cornered a market. Difficult to be completely independent because everyone else can undercut you on price and quantity so deeply, that you can't make up the difference in quality.