explain the rationale behind corporate tax cuts when companies have record stock piles of cash on hand? There seems to be little analysis and most of it points to the fact that corporate tax cuts won’t help.
Ok armchair economists, answer me this
John Jackson
Other urls found in this thread:
forbes.com
milkenreview.org
forbes
unvis.it
en.wikipedia.org
twitter.com
Jayden Gray
Lower cost of their product(s) as every businesses cost is passed down to the individuals who consume their products. That leads to a much lower TCO for the consumer.
Also sage you gay nigger, sage.
Joshua Mitchell
High taxes force them to reinvest into their business and expand it, make it more efficient, innovative etc.
Parker Brooks
End of boom cycle, they have no good investment opportunities and are saving up for the economic meltdown that is on the horizon.
With lower corporate tax rates they will afford to keep their businesses afloat longer when the boom cycle ends. Starting a business will become more attractive as well.
Just look at how European countries make their money. Virtually all tax revenue comes from consumers and labor, corporations have a very low tax rate (around 20%). This reduces tax planning and it seems to be low enough to disincentivize most tax planning.
The US makes very little from corporate taxes, only 7% of the federal tax revenue comes from that. So if reducing corporate tax rates increases the number of employers/employed then this will be a very profitable tax reduction.
Connor Scott
>
Part of the idea is to encourage repatriation of funds held overseas.
Matthew Lopez
Exactly my nazi brother. Without tax breaks there would be no incentive for business to reinvest in better equipment or expand into more markets and utilize volume to lower TCO.
Without the breaks they'd simply offshore in a country that allows them to shelter their profits.
Xavier Barnes
Jews.
Grayson Smith
Money and corporations can be repatriated to the US. Money can be used for capital investments and hiring. Even if firms just do buy backs of their stocks, people gain wealth from increased stock prices.
Eaither way, firms know what to do with their money better than the government.
Joshua Baker
They never cross, just like you never cross your t’s
Cooper Powell
Kill niggers.
White power.
Isaac Baker
You don't make money on cash holdings. Businesses aren't investing back into an unstable market. Liberal cocksuckers worship Apple, but Apple is one of those companies that has been evading billions of dollars in taxes by keeping it offshore, simply to avoid US tax rates. Getting some of that money back is vastly better than getting none of it back while they open another plant in one of the European countries offering tax breaks to businesses.
The lying jew also loves to only talk about the multinationals. The vast majority of businesses in the US are small, and they will all benefit from this.
The lying kike and their liberal golems manage to hold the syumltanious, opposing positions that large companies never pay taxes because they can off-shore all of their profits... but we have to raise their taxes. Which they will pay, because they won't offshore that money. Liberals, nigger, and jews think of economics the same way they think about gun control laws; ie. thiking is forbidden and you faggots are retards just repeating whatever a jewish comedian tells you.
>trying to explain anything to a literal nigger-flag wearing shill
>doing it anyway
>you can't stop me
Thomas Smith
>nigger troll flag
remove it first if you want any serious discussion
Ian Hughes
>little analysis
100 years of economics.
sage
Luis Foster
they don't
Aiden Scott
wow gee thanks, couldn't figure that one out.
Nathaniel Mitchell
ok fine
so to this point of off shore resources, this cut doesn't mean they're going to magically come back...there's no certainty at all that they would...
Hudson Clark
You're young; your misimpression is not your fault.
Corporations and wealthy individuals don't actually have vaults of money. All wealth, even "cash reserves", is constantly in use.
Henry Hall
Fake and gay.
Samuel Reed
Only real fucking cunts think businesses having money is an indication that they need to be taxed more.
Gavin Russell
It costs money to hold operations overseas. If the cost of doing business overseas outweighs the cost of returning to the USA, obviously corporations will come back here. Reducing the corporate tax rate would make that possible. As it stands corporations aren't dumping tax revenue into federal coffers, it's going into the coffers of other countries. This will change that, simply because it's more cost effective for corporations to return to their home country
Colton Johnson
>SOMEONE FORCE THEM TO GIVE ME SOME OF THEIR MONEY!!!
Kill yourself, you fucking parasite!
Xavier Parker
>High taxes force them to reinvest the money they don't have any more because we took it away.
Are you really this fucking stupid?
James Myers
i don't think it means they need to be taxed more, i think it means they could've been spending this entire time, what company needs to stockpile a significant % of its own market cap?
Owen Price
i mean this is flat wrong, my point with the post is that companies need to stop being such huge pussies and pour their wealth back into the economy to see it grow, which is the same concept as deficit spending aka starving the beast
Isaac Howard
lets say i have set up a tax haven and operation overseas, all of a sudden there's a reduction that will net my company a significant portion of operating expenses over a few years time, the CBA is going to favor shutting down the operation and spinning it back up state side while i wait for the next 8 years to swing back and put the tax back in effect? prob not...no?
Sebastian Robinson
Why shut down everything all at once? Businesses presumably are constantly expanding - the US, with a newly competitive tax rate, becomes an attractive place for new factories and facilities. And perhaps a forward-thinking corporation will begin the gradual transition process of shutting down overseas facilities to bring them back home several years down the line
A corporation mulling over the next location of its plants can decide now whether to invest in some shitty tax haven or build it in a developed country that now has a much lower tax rate
John Perez
Companies will have to cut less costs on employees hence cutting down on the cheap foreign labor Trump hates so much
Andrew Bennett
what's wrong with paying people more? can anyone provide a source here, but i'm pretty sure that wages have been severely outpaced by corp profits
Brayden Campbell
Nothing's wrong with it inherently, corporations simply do what is cost effective. Labor is a cheap resource and wages are determined based on what they know people are willing to accept. It's a separate problem entirely.
In the few businesses where worker retention is paramount, companies will gladly offer higher wages, benefits, and training to make sure those workers stay, because otherwise they will lose money from turnover and vacant critical positions
Alexander Murphy
Yes with larger corporations the difference is probably severe as they weren't paying the 35% rate to begin with, most of them were sending their money offshore somewhere and paying a lower rate and manipulating the system, whereas the medium sized American based business that is not a Multi National and can't afford to employ a load of Solicitors and Economists to help diddle their tax rate was stuck paying the 35%.
Hopefully these cuts will incentives a few of these businesses to bring their profits back onshore and start doing things the right way.
MAGA
Austin Flores
Either you let corporations keep their money and they invest it, or you hand their money to the government and they use it to forcibly destroy the economy. Take your pick.
William Long
>exapand it
By going overseas
>more efficient
By firing people
>innovate
By replacing people with machines
Tyler Garcia
you realize the 35% rate applied to corps making over 18m a year, right? those are huge businesses imo
Dylan Evans
corporations are not american by definition, so why bother protecting them?
Luke Cruz
It's to keep them from leaving for greener pastures, which they can easily do.
Also corporate taxes take a bit of time to do their damage in the form of unemployment/low wages. ( and these lead to demand for more government ).
The only ones who can be taxed are the middle class. The rich are mobile. The poor have no money. The middle class can't leave and will pay whatever they are taxed. They are the real tax base.
Bentley Ward
First of all, cash is not profits. Two completely different things. There is also another kind of misconception thrown around by people wanting to rob the corporations and their stockholders is that there is "idle" cash which the government needs to steal and spend. Believe it or not, the corporations keep their cash in a bank...and the bank lends a multiple of the deposits to people and corporations to make payroll, buy inventory, buy production equipment, cars, house, etc. The "idle money" is just an excuse for those of low intelligence and moral character to rationalize and justify to themselves that spending stolen money creates some kind of magical benefits which would not have occurred had the rightful owners were permitted to spend it themselves.
Daniel Harris
They have money
They used that money to elect people who will do what they say
Now they get laws that benefit only them.
Camden Hill
Either way the aim of the Bill remains the same, Supply Side Economics or as some may say "Trickle Down".
We are one step closer to ending Socialism is America
Adam Taylor
Companies don't sit on anything except the reserves they feel are necessary for liquidity purposes. Every single extra cent beyond that is used in some form of investment. Nobody likes having money sitting still.
Taxing it just removes it from the economy, and punishes corporations for employing people, driving down wages, creating another barrier to entry for low/middle income people to invest, and causing capital to flee to other nations with lower corporate income tax. Abolishing the corporate income tax is one thing economists agree on regardless of political affiliation.
forbes.com
milkenreview.org
Austin Gonzalez
*in
Luke Cox
Let's archive it
>forbes com/sites/simonconstable/2016/12/19/6-reasons-trump-should-abolish-corporate-income-tax
unvis.it
Julian Ward
you must be a fan of this concept:
en.wikipedia.org
Luke Hernandez
They don't cross.
If you are seeing crossed rings, you are probably under a great deal of stress.
> yes, I'm seeing crossed rings