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 ...
Stopped reading at “HuffPost”.
“Anyway a third of the overall cuts go to individuals instead.”
The last breakdown I read on the bill on Fox said 81% of the cuts go to corporations, 11% to the middle class and 8% to the poor in rebates.
Keep in mind that labor is a market, and the market always compensates.
Some businesses may opt to spend their (newly allowed to be kept) own money to reward investors, to expand the business, deposit in a bank (save), to pay down debt, or raise their employees pay. No matter what the money re enters the economy to go around again.
Rewarded investors will spend it or invest again (both stimulating the economy supporting jobs).
Expansion will require more employees, more jobs generally raise pay.
Banks will lend the money out to another business to start up or expand, more jobs.
Paying down debt just gets the money circulating again from the newly reimbursed lender.
The only way you can make money dissapear is give it to the government.
CEOs may have other plans but I am sure that once the tax break is given to business President Trump is going to juice American’s take home pay by drastically slowing down immigration, both legal and illegal, and the CEO weasels will have to pay more to keep and attract American citizen workers. President Trump will not have to tell them to do a thing or even pass new immigration laws, all he has to do is enforce the ones already on the books.
President Tump understands leverage and supply and demand better than anyone in D.C. and 99.9% of corporate America.
Maybe that was the bill out of the Senate committee. That will be amended in the Senate, then in conference.
The aim was to have a third go to individuals so that’s probably where they’ll end up.
Kinda fun to watch the sausage making IMO, though it makes many nervous.
“How does one lead to the other?”
Because lower corporate taxes make American corporations more competitive with corporations in other countries that have a lower tax rate. With more cash on hand, there are funds available for new product development, expanding or updating production to lower the cost of manufacturing.As of these forces of increased competitors coming to play, sales go up the new employees are hired to staff position to didn’t exist before, and second or third shifts etc.
With more money in the pocket of shareholders, they spend more, take more vacations, and invest in new businesses which also increases demand for goods and services across the spectrum of the economy. I would think that these basic principles but we will except it but everyone on this forum.
As to the specific merits of this particular bill, I can’t really say too much as I’m not familiar with all the ramifications of every detail, but again I would think that the basic premise of lowering taxes to increase demand it’s not controversial here.
"Seung Min KimVerified account @seungminkim · 3m3 minutes ago
JUST IN: ““It doesn’t look like the trigger is going to work, according to the parliamentarian,” @JohnCornyn says after drama on floor "
So sick of the DC swamp things and their freaking Kabuki theatre.
Is that you, Paul Krugman?
You say that like it's a bad thing. I'm sure the office decor stores won't turn down the new business. The resorts will certainly be happy to host more meetings. As for the huge bonuses, unless the executives stash those in a mattress, that money will wind up back in the economy either through consumer purchases or through savings/investment.
Why would you want Fedzilla taking all that money instead? Do you really think the government would spend it better?
Good thread. It points out what we suspected. The Stock Market casino workers are fist pumping today. I saw a few photos. They look like old women who just hit the slot jackpot. Companies are not going to re-invest as much as some think. They are going to buy back their own stock.
Then sell it that way. Don’t try and feed us a line about how it will result in higher wages and more jobs. Sell it as a corporate incentive that will help raise stock prices and dividends, and in turn will help raise 401K values.
If you cant rebut what I’m saying then just say so. Save the lame attempts at insults for people who aren’t on to you.
Why? We're at statistic full employment now and salaries aren't shooting up.
Helps to know what the other side is saying. Sometimes, not often but sometimes, they stumble on a nugget of truth.
Sure. Wake me when that happens.
High Tech lost its shirt on Stock Buybacks.
Those years are long gone when they made sense.
Those years are long gone when they made sense.
Tell that to all the Fortune 500 firms who are sinking billions into stock buy backs now.
Those years are long gone when they made sense.
Tell that to all the Fortune 500 firms who are sinking billions into stock buy backs now.
Those years are long gone when they made sense.
Tell that to all the Fortune 500 firms who are sinking billions into stock buy backs now.
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