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To: CSM
What other expectation do you have from capitol investments or expanding research?
Our current system reduces the risk (and return at the same time) of investments and R&D by allowing businesses to write off investment losses and R&D costs. Without these write offs, bad investments will go straight to the profit/loss of the company. And any R&D that doesn't pan out will be a total loss for the company. How this would affect a company's decisions is anybody's guess, but it wouldn't be far fetched to think that due the greater risk, investment and R&D would decrease.
157 posted on 08/27/2004 10:26:41 AM PDT by Your Nightmare
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To: Your Nightmare

Since the return is minimized as well as the risk, would not the increased risk be justified by an increased return? As it stands today, the R&D budgets are maxed at the level of the "write-off" amount, give the corporations the decision making freedom and the potential pay-off may just cause an increase.

Of course, the point made by the other poster is that the "greedy" corporations won't reduce their prices, instead they will increase profits, investment and R&D. If his statements are true, then an increase in jobs would be expected.......

If his statements are not true, then the prices would be decreased.


180 posted on 08/27/2004 11:18:19 AM PDT by CSM (To spread the wealth the liberal is willing, he'll take YOUR dollar and keep his shilling. -albertp)
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