Posted on 11/30/2017 1:02:35 PM PST by DoodleDawg
Republicans insist their tax cut bill will benefit workers, though the legislation has few provisions that directly benefit people with modest incomes in the long run.
Instead, the core of the bill is a huge cut to corporate taxes, bringing the top rate down from 35 to 20 percent. Republicans say workers will be better off if corporate executives and shareholders have more money.
“If they’re making money, they invest that money, they create more opportunities, more jobs, more research,” Sen. Richard Shelby (R-Ala.) told HuffPost.
A number of top CEOs, however, have signaled they plan to reward their investors instead.
Instead of hiring more workers or increasing wages, executives from major companies including Cisco Systems, Pfizer, Coca-Cola, Amgen and Honeywell have said they plan to use the windfall from the corporate tax cut to first increase stock dividends or to buy back shares.
“We’ll be able to get much more aggressive on the share buyback” after the tax cut is passed into law, Cisco CFO Kelly Kramer said in an earnings call earlier this month. Stock buybacks increase the value of shares held by investors ― a group that typically includes corporate executives, who are among the corporate tax cut’s biggest proponents.
(Excerpt) Read more at huffingtonpost.com ...
I suspect that Shelby is going to be badly disappointed.
Huffpo = Fake News
So you really think corporations will take the windfall from the tax decrease and shower it on their employees?
What part of repatriating the earnings that were driven offshore does Huff and Puff not understand?
At first over half of the savings from the corp cut will go to shareholders and buybacks.
But then market forces will send more of it to workers and expansion, depending on the competitiveness of the industry and it’s international exposure.
Anyway a third of the overall cuts go to individuals instead.
But heck, the bill is not finalized at this point.
They obviously can’t seem to recall that folks with modest incomes don’t pay much in income taxes to begin with so OF COURSE they aren’t going to benefit much.
Sure, new office decor, meetings at exclusive resorts, and huge bonuses all around for management.
They're employees, too, right?
Where the the dividends or sale profits will generate 20% Cap Gains taxes for those that receive distributions or buybacks, Increasing Federal government revenue negating the necessity of high Federal tax rates.
They will for the most part invest it back into their companies.
The companies will grow and hire more people.
If they compete, then they will pay higher wages.
Everyone will benefit l because the economy will grow.
Aren't most Americans "shareholders" since pension funds own stocks?
Even under the plans being considered offshore earnings are going to be taxed some - 10% in the Senate plan and 14% in the House plan. Why would businesses want to repatriate earnings from offshore and get taxed on it when they can leave it offshore tax free?
“Republicans Insist Tax Cuts Will Benefit Workers,”
—
Zero insisted that his health plan would drastically cut premiums ... same plan, different words by a different political party.
Yeah. But the twerp writing the article did mention direct benefit.
The long term effect of lowering the corporate rate will be both higher stock prices and more jobs.
More jobs will lead to higher employment and higher wages as the job market heats up. Higher stock prices will benefit everyone with a 401(k).
That's ridiculous. Salaries, like taxes, are an expense for business. All businesses will keep expenses as low as possible. There is nothing in this bill to require increased wages so companies have no incentive to do it. Likewise expansion. Expanding production is an expense. Companies will only do it if there is an increase in demand for their product sufficient to justify the additional expansion. Nothing in this bill provides that incentive either.
Anyway a third of the overall cuts go to individuals instead.
If two-thirds went to individuals then the extra purchasing power would provide the incentive business need to expand, wouldn't it?
Exactly. No company in its right mind will increase expenses at the cost of higher profits. They will instead use the tax windfall to boost share prices and reward investors.
But Congress keeps telling us that these tax cuts will result in higher wages for employees. Comments from the major companies seem to indicate otherwise.
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