[DoodleDawg]

“I hope they’ll do the right thing. What we want corporate America to do is what the smaller companies do,” Shelby said. “I believe a lot of that will go on, rather than buybacks and stuff like that. I hope that’s what will happen. We have to work the high road, and hope they do that. Some won’t, but I think a majority of the people will invest in the future and grow the economy.”

I suspect that Shelby is going to be badly disappointed.

[Enlightened1]

Huffpo = Fake News

[E. Pluribus Unum]

The US has the highest corporate tax rate in the world.

What part of repatriating the earnings that were driven offshore does Huff and Puff not understand?

[mrsmith]

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.

[Navy Patriot]

...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.

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.

[Cowboy Bob]

Republicans say workers will be better off if corporate executives and shareholders have more money.

Aren't most Americans "shareholders" since pension funds own stocks?

[pstwwl]

Nonsense. It is largely irrelevant what corporate CEOs intend to do with the money. Market pressures will result in a different reality. If corporate and business taxes are cut across the board, it suddenly becomes more profitable for corporations to exist. More businesses will have an inventive to be created or expand. This means more open job positions, which will mean more competition between employers for workers, which will bid up wages. 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.

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.

[PIF]

“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.

[CurlyDave]

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).

[marron]

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.

[cherry]

corporate America will take the money and run...

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....

[Mariner]

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.

[TheStickman]

Stopped reading at “HuffPost”.

[WMarshal]

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.

[SkyPilot]

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.

[Zathras]

High Tech lost its shirt on Stock Buybacks.
Those years are long gone when they made sense.

[No.6]

> 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.