well if they "do the right thing" and hire folks that would otherwise be unemployed then you just increased your tax base which generates revenue albeit different from interest but generates nonetheless. not saying they will but that's the idea. if they don't it's because of greed not policy. point is the policy will/would work if corporate greed doesn't factor in. so if it does, don't blame the policy or idea, blame the corporations and their greed. fight the real problem and enemy you know.
No, they are not remotely similar. One has a specific purpose and outcome in mind, and it's mandated and comes with a payback system. One is just a giveaway for no public policy purpose. It's the difference between a loan and handout. No one is making these corporations pay back their taxs cuts if they benefit from it. The TARP process had a specific mechanism to do that - one that worked phenomenally well and repaid taxpayers in full and beyond. The corporations got no net money out of it - they simply got a temporary bridge loan.
Sorry, I haven't been on CFans much recently and missed it. If a public company gets a tax cut, they end up with more money. In some cases, they would spend it on growth - but here, corporations already have record cash amounts and have nothing to do with it because they are already meeting all necessary demand. So they've simply been buying back record amounts of stock, which raises stock prices - meaning more money goes to the stockholders, who are largely the wealthy. If the corporation gets even more cash, they will just more of that - many companies have already openly said that.
good point, i don't. i just like hanging out with the lovely folks in d&d. i guess i hate myself the most.
https://www.cnsnews.com/news/articl...d-income-taxes-through-december-still-run-225 no one wants to talk about spending. just b**** about everyone getting to keep more of what they earn. you could collect every ******* dollar earned from every american and it won't matter if you don't fix spending.
Record revenue, record population, record spending on medicare. Lots of records will be broken by revenue and spending.
To be more detailed i'll try to share my opinions on what happens. It really depends on the type of industry/company and goes as follows: 1.) Regulated Companies (i.e. Utilities) As their profit margins are regulated any savings would then be passed on to consumers (which is akin to a tax cut to all as utility costs drop for millions of Americans) Every American is both a producer and a consumer, if the cost of consumption falls this is akin to a raise. 2.) Highly Competitive (Commodity) Industries - Their profit margins are 'regulated' by fierce competition. If excess margins is gained through the tax bill it should immediately reflect lower prices to consumers, potential jobs/wages increases. 3.) Brand/Moat Businesses - Businesses with a moat around their business keeping fierce competition at bay. Businesses with brands can usually retain those earnings and will then benefit stockholders or potentially some employees. Many companies do, however, domicile abroad or have contemplating moving offices abroad to benefit from much lower tax jurisdictions globally. This removes much of this incentive and may have businesses bring back those offices/employees to the US as the cost is no longer beneficial due to the lower tax spreads. This has been talked about and needed for a long time and I'm glad it got done. The fact that the standard deduction was doubled and the child tax credit increased along with removing these subsidies to wealthy homeowners, all in all i'm pleased.
LOL. "The Media". I guess people are stupid enough to believe snippets of people's opinion represent the media.
A bunch of already planned bonuses, made public in light of the tax plan, doesn't make this some huge coup. This will need several months to make its way through. I'm for a corporate tax cut, but not at this expense. It will need to be the boomers to take a hit on this one when it comes down to entitlements. Many companies domicile abroad to be closer to customers, talent, and the growth. Another country or trade bloc can merely lower the taxes to compete, then what? I actually am in favor of the corporate tax cuts, but none of the other stuff. Our next recession is going to be much worse because our revenue is going to tank and our debt will soar; i.e. the Bush Jr special. This is the largest corporate tax cut in ~ 40 years, anyone doing a victory lap now should probably stick to just watching CNBC.
Yes because there is so much business and revenue coming from Bermuda (insurance industry), Ireland and Lichenstein.
Oh, if only it was so simple. Every state and sometimes even utility is different, but in many cases, the basic rate case isn't revisited unless the utility applies for it. Rate cases are very cumbersome. It's a ton of work for both the utility and the utility commission. So, they've increasingly gone to a system of atomized riders. The utility wants to deploy new meters, so they keep the underlying rate case the same and ask for a rider that just adds another line item to the utility bill. For investor-owned utilities, the commissions assume there will be some puts and takes every year, the companies will have unexpected expenses and windfalls, which is why they allow some rate of return to make the risk worthwhile (and handsomely so). The point being, in many cases those tax savings will not be returned to the ratepayer unless enough political pressure is brought to bear to force the issue. Because the mechanisms currently in place do not force the utilities to give up the money. A bunch of state AGs, in fact, recently wrote to FERC asking for action to compel utilities to give the tax benefits back to ratepayers. There are a couple of successes already, but we'll have to wait to see how widespread it gets. https://www.washingtonpost.com/busi...50bc3300042_story.html?utm_term=.6dbe8f1c3b64 Of course, even if ratepayers win there, they're still paying 10%+ return on capital to an investor-owned company that has almost no risk of default. Which is ridiculous. European utilities make something like 5%, which seems more appropriate to their actual risk exposure.
I'm not sure at all what this has to do with my post?? I stated what happens to companies in varying industries when taxes are cut within our competitive system. I think there is a massive government inefficiency and spending problem. We're taxed in every such way yet the government still needs billions monthly to subsidize its spending?
Well, one of the largest expenditures of the govt. is paying down interest on the debt. This tax bills only increases the debt.
LOL. Me neither, maybe I left the first part out. And our aging population is a big part of the spending problem, look at how much we will be spending on our past. And our military which apparently anything less than decisively beating China or Russia is not enough. Smart spending is a key aspect of America's supremacy in the 20th century, we've lost sight of that.
