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 ...
Trump wasn’t elected to give us a tax break. He was elected in large part to bring companies home from overseas, keep companies from leaving, and revitalize the companies that are here.
That ought to have been the focus of the tax bill, but it has got muddied up considerably.
That's not what the corporations themselves are saying.
The companies will grow and hire more people.
Absent any increase in the demand for their product then why should they?
If they compete, then they will pay higher wages.
Highly unlikely.
Unbelievable. They’re all Marxist.
Most Americans don't have pensions anymore.
we are being so fooled...and so many freepers falling for it...
the corporate money haul will be made permanent, while our measly tax "cuts" if they are indeed cuts, will expire in a few yrs....then the unknowing will know....
All tax cuts are good.
corporate America is on record for wanting more and more illegals so they can hire them at low wages..
If they “shower” in on their investors what happens? The vast majority of share holders in the US are INSTITUTIONAL investors. For example, Coca-Cola is 66.59% owned by institutional investors like Vanguard.
http://www.nasdaq.com/symbol/ko/ownership-summary
Translate that to mean 401K stock plans. Mom and Pop / grandma and grandpa. More money will either flow into their accounts via dividends or their account holdings will increase via increase in stock value.
You have just contradicted yourself. Cutting taxes will increase corporate profits, that much is true. But why should corporations then dilute those profits by expanding their business unless there is a clear and unmistakable increase in the demand for their services? Tax cuts alone aren't going to provide it. And "if you expand then they will come" is not a good business strategy.
Likewise, lower taxes makes it more profitable to produce and sell consumer goods. A higher supply of consumer goods in the market drives down prices.
Again you are contradicting yourself. If the object of a company is to maximize profits then why would they spend money to expand output which would result in lower prices and lower profits?
So, even if corporations intend to keep all the money for their shareholders the realities of competition and a dynamic economy will result in much or most of the benefits going to workers and consumers.
Your scenarios sound fine in theory but do not much resemble reality.
You'd think we would have learned by now.
How does one lead to the other?
Why are tax increases for me good, too?
How about you tell us why a tax cut is bad thing?
You should be glad the corporate rate is going down. You should be mad that the individual rate is going up for some. The two things are not related. Both should be going down.
I'm not opposed in tax cuts in principle, though I do have issues with mine being raised so other people can have theirs lowered. I do object to being fed a line of bull like I'm some sort of idiot. Congress is either lying to us or they're incredibly stupid. Not exactly sure which but I'm leaning towards the later.
I think you made a mistake and made a right turn when you meant to turn left...extreme left.
DU is the other way down the I-Road.
LOL!
“THERE ARE NO MARKET FORCES! RICH PEOPLE CAN DO ANYTHING!”
No, but possibly business growth and success will tighten up the employment markets and put pressure on for increasing wages.
I do not think corporate executives are going to be thinking about rewarding the employees, many of whom have had their incomes flat-lined for the past 10 years.
History is a forgotten ‘art’ ...
I’m jealous
I put up a story on the new “Corker Amendment” to place an auto-increase in the bill from the AP and the post gets downgraded to “Cheese, Moose, Sister” in Chat with a keyword of “Troll” and here you put up an article from Huffpost deriding the GOP for not being sincere as to their “expectations” for corporate America...alluding to them lying about job increases...and after 50 mins it’s still in news.
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