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Originally Posted by Guest
The across the board cuts for all businesses in the hopes of creating jobs is wishful thinking. Tax rates could easily be targeted at businesses that maintain or create American jobs. Maybe a sliding scale that considers gross and net incomes of a business or corporation ratioed against the number of employees. Why reduce taxes on businesses that don’t increase employment?
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I just have to shake my head at the ignorance of those who believe a tax cut for businesses or the .01% of wealthiest Americans, will result in massive hiring...even when it has been shown time after time to not be the case.
Even someone with a modicum of intelligence, should realize that if a business/company can justify hiring new employees due to demand...they would do it without a tax cut.
It would be pretty stupid to hire additional employees, if the need/demand wasn't there...regardless of the extra cash flow.
If the Repub's wanted to prove their 'trickle down theory,' (re: 'voodoo economics') all they would have to do is to make the tax cuts...
dependent on actual employment.
Hire more people (% wise)...you get a significant tax cut.
It really is that frigging simple.
But we all know that will never fly, as it would then shed light on the lies the right is spewing in their efforts to give their wealthiest donors/supporters...a huge tax cut.
The irony of course, is that since about 70% of our economy is consumer driven, the biggest impact would be to put more money in the pockets of the middle class...who will then purchase more goods and services.
THEN businesses will have a reason to expand...and will hire additional employees.
As it stands now, business owners will either pocket the tax cuts or for publicly held companies, the additional money will be used for share buybacks...or to increase stock dividends.
Which of course increases the compensation of upper management.
NOT to hire additional employees...for a demand that has not changed.
It’s a Myth That Corporate Tax Cuts Mean More Jobs - The New York Times
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It’s a Myth That Corporate Tax Cuts Mean More Jobs
Despite the enormous savings AT&T has realized, the company has been downsizing. Although it hires thousands of people a year, the company, by our analysis at the Institute for Policy Studies, reduced its total work force by nearly 80,000 jobs between 2008 and 2016, accounting for acquisitions and spinoffs each involving more than 2,000 workers.
Companies buy back their stock for various reasons — to take advantage of undervaluation, to reward stockholders by increasing the value of their shares or to make the company look more attractive to investors. And there is another reason. Because most executive compensation these days is based on stock value, higher share prices can raise the compensation of chief executives and other top company officials.
Many other large American corporations have also been playing the tax break and loophole game. Their huge tax savings have enriched executives but not created significant numbers of new jobs.
Our report analyzes the 92 publicly held American corporations that reported a profit in the United States every year from 2008 through 2015 and paid less than 20 percent of their earnings in federal income tax.
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