Hold up: the Taxpayer Bill of Rights, TABOR, can mean different things depending on the context. Why can’t lawmakers be more creative with names? Somebody send a carmaker over there.
Anywho, one of the TABORs is under the IRS. The IRS has a Taxpayer Bill of Rights, defining all of your rights as a U.S. taxpayer. You have the right to be informed about IRS decisions about your taxes, the right to dispute and appeal IRS decisions, the right for the IRS to not be a d*#% during audits...things like that. This TABOR was passed into law by Congress in the 1980s, and updated in 1996, so it’s the law...not just the IRS being nice.
The more controversial type of TABOR is the one that limits a government’s power to tax their people, oftentimes based on measures like inflation and population...a fan favorite of libertarians and conservatives.
This isn’t too common, but Colorado is known for taking the daring TABOR plunge. While Oregon, Nebraska, and Maine all toyed with a Taxpayer Bill of Rights to put a cap on the states’ ability to tax its people, none of them took the jump.
Colorado is the lone weirdo to this day. Advocates are happy they get to keep their money, and hope that the bureaucrats are being more efficient with what they have. Meanwhile, critics point out that Colorado is the 48th state for higher education spending and 44th in road repair spending, which means TABOR could be hurting the economy more than it’s helping.
Related or Semi-related Video
Finance: What is Dilution?77 Views
finance a la shmoop. what is dilution? ownership is a pie.
here's 100% of pie. it's divided into 20 million slices, there there you just [man holds pie]
can't see them. each is a share of ownership in the company whatever.com
well one day the CEO of whatever.com decided she wanted to buy her hated
competitor something.com for 2 million shares. then she wanted to buy her
marketing vendor sell my butt off.com for a million shares. well her stock had
been trading at 12 bucks a share for a total market valuation of 240 million
dollars .see we get that 12 times 20 million. but then after printing 3 [equation]
million more shares to buy her competitors,
well she now has 23 million slices of pie .and yes that's how it works!
companies can essentially just go to the Xerox machine and print shares of their
own stock, that they didn't formerly own. but now she has 23 million shares [printer prints shares]
outstanding and not 20 million. so at $12 a share the stock market is valuing her
company at a meaningfully higher price. 12 times 23 million is 276 million. it's
saying that the value of the three million share dilutions she took in
buying something dot-com and Sell my butt off.com [woman waves to camera]
was the difference between the 276 million in the 240 million or 36 million
bucks. but let's say the market value had stayed flat at 240 million. well now with
23 million shares out the stock is only worth 10 dollars and 43 cents a share,
instead of the previous $12 a share. in other words shares have been diluted
each share of whatever com is no longer worth as much as it used to be. that pie
isn't looking quite as appetizing now is it? [man frowns in kitchen wearing apron]
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