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 ...
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.
Doodle has shown, based on his posts, that he believes in “demand side” economics. That’s why he can’t understand how lowering corporate taxes from the highest in the developed world and 6-8 Trillion dollars of repatriated cash will create an environment where the free market will create better conditions, INCLUDING HIGHER WAGES, for Americans. Like Krugman, his belief in Keynesian demand side economics has blinded him to reality.
Pessimistic much?
With Ryan and McConnell running Congress it's hard not to be at times.
No, they will expand operations, hire more people which will affect the number of available candidates in general, resulting in hire wages due to supply/demand - along with them gaining experience and being able to command a higher wage as they progress.
Otherwise, why not keep increasing the corp tax rate? take more and more and more, I’m sure that’ll have no impact on the ability to expand and hire right? The policies of the left just encourage EVERYONE to have nothing and put the money in the power of politicians to “do good”. What could go wrong? /s
> I suspect that Shelby is going to be badly disappointed.
Their loss; so all the talent will go to the smaller companies who aren’t playing ‘labor arbitrage’ or found their own companies, knowing they can beat their former bosses.
That’s the nice thing about the free market; it’s not dependent on a few feudal lords to give the peasants permission to prosper or to survive.
“That’s the nice thing about the free market; it’s not dependent on a few feudal lords to give the peasants permission to prosper or to survive.”
This is so true!!!!!!!
Fake news? That’s precisely what they will do. You know they took pensions away and didn’t give the excess to workers. Wake up!!!
Of course they will.
Otherwise, why not keep increasing the corp tax rate?
I'm not arguing that taxes should go up. I'm just pointing out that believing that corporations will pour that money into jobs and raises out of the goodness of their hearts is naive.
The problem being that from what I understand the tax cuts are geared more towards corporations rather than small and medium companies, the real job creators.
Yes Huffpo is FAKE NEWS... and radical leftist.
Tax cuts are good. It’s not the government’s money.
Companies in this article are speculating what they will do.
The quote, “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.”
That’s great for the shareholders, the company and the GDP.
The company will generate even more money and reinvest in itself. A company is either growing or shrinking. They will use it to grow. Nothing wrong with that at all.
Did your Marxist college Professor teach you that?
Once you get in the real world for a while, see how it really works, then you will understand it does not play out that way.
You are parroting what your out of touch Marxist professor taught you.
Moot anyway. They pulled the bill and are not voting on it. No surprise they can’t do a thing.
YAWN
So you seem to think that corporations will expand their production capacity, hire new workers, and raise salaries not because it makes financial and economic sense but because the government wants them to and I'm the Marxist?
I am not saying that at all.
Corporations are either expanding or contracting. That is the reality.
If they have more money, then they will invest it on expanding their business. This is because it will create more wealth for them.
You keep looking for that 1 answer.... There is not 1 answer. Everything in life is a Universe of answers that are always changing, expanding and contracting.
If they think they can make money from it, they will invest monies both in product and in employees.
If it’s not profitable enough to be worth the risk and hassle, they won’t.
Why? We’re at statistic full employment now and salaries aren’t shooting up.
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No. We’re not. We’re pulling out of a stagnant phase with a huge amount of slack in the labor pool. People are merely being pulled out of the idle class at a rate similar to job growth.
Wages won’t change until illegal aliens and H1B are sent home.
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