Paul C wrote in [OPE-L:4407]:
> Expenditures on investment do
> not depend upon prior profits, they are the cause of current
> profits. They not limited by past profit because they can
> be funded on credit.
If we abstract from the role of the state, where does the funding for
credit by banking capital come from? Presumably, that credit depends in
large part on the money-capital that banks can loan to firms which, in
turn, depends largely on prior realized profits.
> I think it is wrong to say that taxation necessarily reduces the
> 'money capital' in the hands of capitalists.
Is it wrong to say that to the extent that taxation on profits represents
a redistribution of surplus value, it reduces the after-tax profitability
of firms?
> It is not even necessarily the case that increased taxation on profits
> reduces the flow of after tax profit. If the taxes are spent for instance
> on arms, the effect is to increase the mass of profit to compensate.
This would increase the profitability of the arms manufactures. It's
effect on the mass of profit would depend on our understanding of
productive and unproductive labour.
In solidarity, Jerry