Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I used to think Rubio was the re-incarnation of evil, third only to Ted Cruz and Hilary Clinton, but now I realize that Rubio and Hilary were just stupid.
All tax breaks are windfalls for the companies that endorse the cut. The rhetoric always plays the same recording... They will create more jobs with more benefits .... Trickle down fails every time.
Any statutory burden of a tax on corporations is allocated as follows:
X% is borne by customers in the form of prices higher than they otherwise would be
Y% is borne by employees in the form of total compensation (and hours worked) lower than they otherwise would be
Z% is borne by business owners (shareholders) in the form of profits lower than they otherwise would be
...where X+Y+Z=1.0 (that is, X%+Y%+Z%=100.0%)
There is no windfall when a tax is reduced. 100% of a tax reduction flows to actual people: customers, employees, and business owners.
Folks, the proof's in the pudding. Record stock market, record low unemployment, historic return of manufacturing and repatriation of dollars, finally fixing the trade deals, massive business hiring and expansion plans, and rising wages.
The tax reform act was not a "giveback for the rich", though that slogan plays well with the ignorant. It's a stimulus to crank up our economy to a level not seen since the 1940s.
A very myopic view of things.
Quote:
If conditions hold, we may be seeing growth rates in the 4 and 5 percent range in a year or two. Pretty amazing.
Understand, we are a very mature economy. Those growth rates are unhealthy (and are unlikely to happen). What is needed is to get more money into hands of the bottom/middle earners so they can spend it. Trickle down isn't going to do that.
The US Corporate Tax Rates were the highest in the business world. When Corporate Taxes were included, it hit companies in the pocket book. I am sure you have heard that the US were exporting jobs overseas, when cost to doing business, forced the corporation to charge prices that made their product above what products made in other countries and imported to this country no longer competitive, and to stay in business, the US companies exported those jobs overseas by having foreign companies build the product, which was imported back to the United States for sale here under the US company name.
A lot of US companies in states like New York and California with high corporate taxes have moved their production to states like Nevada, Washington and Texas, which have no corporate taxes. Apple brought back to the US lap top computer production and Put it in Texas instead of in California. Tesla is putting their big Auto Battery Factory in Nevada not California where there car factory is located. Both will be a huge number of jobs. Link shows the state corporate tax rates by state.
The tax cuts were to bring the Federal Tax Rates more in line with the rest of the world. It was to slow or stop companies moving from the United States to other countries outsourcing job to other countries. It was to make it more attractive to open factories, etc., in the United States, and bring jobs Home.
Currently the corporations that do manufacturing in the United States, are running at the capacity sales will sustain, and they have hired to full crews needed for this level of production. This is proven by lowest unemployment rate since 1969 the latest I have seen on this.
This is not the major reason for the tax rate cut. Jobs will be created by companies like Apple bringing their lap top business back to the USA, and Companies like Tesla putting their new battery plant in Nevada instead of California to save those high taxes.
The corporate tax cut, will take time to start really effecting US jobs, but without the cuts it would have just driven more American jobs to foreign countries.
""There is still a lot of thinking on the right that if big corporations are happy, they're going to take the money they're saving and reinvest it in American workers," Rubio, R-Fla., told The Economist in a story release Monday. "In fact they bought back shares, a few gave out bonuses; there's no evidence whatsoever that the money's been massively poured back into the American worker."
Have to agree with that statement.
I'm not surprised but I have to wonder if the President's international trade policies had any effect on business sitting on cash, or if it is still companies running lean because it worked during the recession?
Quote:
Originally Posted by jrkliny
Money is not going back to the working population unless businesses expand. Some businesses are expanding. Others are going bankrupt or are cautious about expanding.
Exactly. I see a lot of fast food popping up by me, will that create a better economy and more business tax revenue, I can only hope but I am doubtful. We need more economic players and players with more money. This is partially how the 1950's and 1980's economic expansions worked and why the 2000's and 2010's haven't seen such growth.
Quote:
Originally Posted by leastprime
Did you expect some other result?
ANyone with half of a brain should have expected not spending but rather sitting on the money. I have to wonder if the potential Trump trade wars effected anything. Tariffs domestic and abroad will make more people play conservatively.
""There is still a lot of thinking on the right that if big corporations are happy, they're going to take the money they're saving and reinvest it in American workers," Rubio, R-Fla., told The Economist in a story release Monday. "In fact they bought back shares, a few gave out bonuses; there's no evidence whatsoever that the money's been massively poured back into the American worker."
Have to agree with that statement.
Welp! That's that. We tried as hard as we could for 3 months and could not see any results, so we may as well increase taxes and admit failure.
That is a self ingrain mind set at any big corporation. If it wasnt for the pure labor that help put them on the map, then they would not be in business. Just because you own stock doesnt give you any more power to the person that is sweeping the floor. If it does, then prove me wrong? If i invest 20 bucks in your company, I am taking a RISK, and a RISK that you will lose or gain, should not have an affect on the person who is answering the phone from getting a raise base on tax cut that was sole purpose was to help business invest in their employees, not some bonus for lobby for a congressman. We the people can provide value all day long, with skills and education, at the end of the day your business is to find the best qualify person at the cheapest rate possible. We the people have to eat and shelter to pay for, so we must in such sad situations have to downgrade Our value to take that underpaid job. I have over 15 Years of Computer knowledge and 5k worth of certs and associate degree in computer science. Was promise that i could be banking over 100k a year by my 5th year in the same industry. Nope, because were a dime a dozen market is saturated with people of my skill sets. Yep your next excuse will be change skill set and find a talent that will put you in demand. Well Yep, I have done that too.. went from a EMT/Medic to Traveling Tech for a fortune 500 to a oil industry company. Still same issues. But back to the story at hand.
Tax cuts are designed to help the econmy and in this case was to help the company offset its wages to be use for the employees. But we knew that was a load of Bull.. and your congressman was bought and pay for. Now are you going to vote them out or keep feeding the cow?
When politicians want to use tax policy to affect employment, they don't simply cut taxes. They create tax credits that are targeted at specific employment metrics.
The highlights above are NOT the reasons for the tax cut.
The corps get a writeoff for buybacks to compensate their employees while avoiding a hit to their reported EPS. As much as 30-40 percent of large cap tech employees' compensation is financed using stock grants and buybacks.
The US Corporate Tax Rates were the highest in the business world. When Corporate Taxes were included, it hit companies in the pocket book. I am sure you have heard that the US were exporting jobs overseas, when cost to doing business, forced the corporation to charge prices that made their product above what products made in other countries and imported to this country no longer competitive, and to stay in business, the US companies exported those jobs overseas by having foreign companies build the product, which was imported back to the United States for sale here under the US company name.
A lot of US companies in states like New York and California with high corporate taxes have moved their production to states like Nevada, Washington and Texas, which have no corporate taxes. Apple brought back to the US lap top computer production and Put it in Texas instead of in California. Tesla is putting their big Auto Battery Factory in Nevada not California where there car factory is located. Both will be a huge number of jobs. Link shows the state corporate tax rates by state.
The tax cuts were to bring the Federal Tax Rates more in line with the rest of the world. It was to slow or stop companies moving from the United States to other countries outsourcing job to other countries. It was to make it more attractive to open factories, etc., in the United States, and bring jobs Home.
Currently the corporations that do manufacturing in the United States, are running at the capacity sales will sustain, and they have hired to full crews needed for this level of production. This is proven by lowest unemployment rate since 1969 the latest I have seen on this.
This is not the major reason for the tax rate cut. Jobs will be created by companies like Apple bringing their lap top business back to the USA, and Companies like Tesla putting their new battery plant in Nevada instead of California to save those high taxes.
The corporate tax cut, will take time to start really effecting US jobs, but without the cuts it would have just driven more American jobs to foreign countries.
Wish people would stop trotting out that old canard about US corporate taxes being "highest in the world...."
Yes, they were on paper, but just as when personal income tax rates were near 90% post WWII few if anyone actually paid that amount.
Thanks to a vast and bewildering array of credits, deductions and other methods companies were largely able to shave things down well below 35%. Heck many ended up getting refunds that often stretched one, two or more years carried forward.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
)
