in the end , the people running for office should decide if its a price they are willing to pay
it used to be a celebrated virtue to be a company man. why cant it be the same to be a "government" man ?
in the end , the people running for office should decide if its a price they are willing to pay
it used to be a celebrated virtue to be a company man. why cant it be the same to be a "government" man ?
How about taxing the...Government ?
For example: I am a teacher. I run for office. I win. Now, as a consequence of my win, my tax bracket for the rest of my life, is 100% after i exceed the higher of either: a) my elected official salary, OR b) the average last 5 years of W2 income, OR c) the average last 2 years of W2 income.
You'd delete inmediately all the grifters getting into government to be rich. And because those narcissists griefters people would self select themselves out of the running; it gives breathing room to those willing to actually do their DUTY for country. Those willing to sacrifice lifetime income.
This is pathway to the less charismatic, but more duty-oriented people that would not mind working in the govt and also do a good job. Under these rules, you dont care if I stay in govt forever, either. Limited terms have no point, when you can't grift.
This also takes care of those pesky post-election speaking fees, as well!
"black ops or bullshit?"
However, spending a premium on cloud services over what you could with an on-prem capital investment does not help your cash position.
His tenant of frugality would have conflicted, especially since the cloud premium can easily exceed the tax rate - that is to say, paying taxes would have been cheaper
Section in your linked article about frugality https://www.colinkeeley.com/blog/john-malone-operating-manua...
In any case, spending on this either opex or capex doesn't help you gain or lose marketshare. Conserving cash can help, so you'd want to employ the lower cost option regardless of what line of the financial statement it hits - it's not going to be cloud if you follow that thought through
If cost was equal then opex gives a tax advantage, most companies are valued on EBITDA so still may not be their priority to optimize tax spend - a lot of other methods to avoid taxes. But the environment I've operated in I choose to capex because it conserves cash (is cheaper) and improves EBITDA optics (is excluded)
I say lower your tax bill.
"not the same ting" - nnt
if you are a profitable company paying taxes, you 100% want to defer taxes (part of EBITDA) thus trade earnings for market share.
This is exactly what TCI did [1] with cable
[1] https://www.colinkeeley.com/blog/john-malone-operating-manua...
The argument made 2 decades ago was that you shouldn't own the infrastructure (capital expense) and instead just account for the cost as operational expense (opex). The rationale was you exchange ownership for rent. Make your headache someone else's headache.
The ping pong between centralized vs decentralized, owned vs rented, will just keep going. It's never an either or, but when companies make it all-or-nothing then you have to really examine the specifics.
The Cloud providers made a lot of sense to finance departments since aside from the promised savings, you would take that cloud expense now and lower your tax rate.
After the passing of the One Beautiful Bill ("OBB"), the law allows you to accelerate CapEx to instead expense it[1], similar to the benefit given by cloud service providers.
This puts way more wind on the sails of the on-prem movement, for sure
[1] https://www.iqxbusiness.com/big-beautiful-bill-impact-on-cap...
Courts of law have already found that AI interactions with customers are binding, even if said interactions are considered "bloopers" by the vendor[1]
[1] https://www.forbes.com/sites/marisagarcia/2024/02/19/what-ai...
There is a certain type of mentality that just doesn’t believe that government should do anything, and that private enterprise will always have the solution.
Those people appear to be in control of all levers of power in the United States.
For example - The ratio of government employees (including contractors) to US population is at an all time high[1], and the ratio of GDP to government expense is at an all time high[2].
It should be obvious if you have a profilgate printer priting dollars left and right, and the printer's controllers livelyhood depends on the printer working, workers will eventually lease printing to anyone willing to pay the controllers.
Thus, doesn't seem like a problem of wealthy people to me. You are always going to have wealthy people in any society. But it seems the fault is at having a printer, and letting people who aren't your neighbor, to control it.
I'm open minded in this being a "Chicken or egg" Problem. But I'd need to hear a compelling argument for it.
[1] https://www.brookings.edu/articles/the-true-size-of-governme...
[2] https://www.imf.org/external/datamapper/exp@FPP/USA