HomeHome  CalendarCalendar  FAQFAQ  SearchSearch  MemberlistMemberlist  UsergroupsUsergroups  RegisterRegister  Log in  

Share | 
 

 What will US Corporations do with their 14% Tax Windfall?

Go down 
AuthorMessage
NoCoPilot

avatar

Posts : 13033
Join date : 2013-01-16
Age : 64
Location : Seattle

PostSubject: What will US Corporations do with their 14% Tax Windfall?   Fri Dec 22, 2017 6:55 am

That's a HUGE amount of money, assuming the corp was paying at the going rate (which few do).  So it seems to me this is CRITICAL to the effects of the Republican legislation: what will the corps do with this windfall?

Probably [almost undoubtedly] most of them will use the cash to give the CEOs major bonuses, to buy back shares of stock, and to pay dividends to shareholders.  This is generally what companies do with spare cash -- improve their own financial position.  "Trickle down" to workers, or even more ridiculously, hiring some unneeded workers, is not on the table.

Bringing offshore cash home?  Why would they choose to pay 15.5% on reserves when they can continue to pay 0% in the Caymans?

Investment?  The long-term stability of the economy just got raped and throat-slit.  Nobody's going to make any long-term investments.


Last edited by NoCoPilot on Sat Dec 30, 2017 7:15 am; edited 1 time in total
Back to top Go down
View user profile
richard09

avatar

Posts : 2868
Join date : 2013-01-16

PostSubject: Re: What will US Corporations do with their 14% Tax Windfall?   Fri Dec 22, 2017 6:08 pm

Big corporations are already doing very well, and that's exactly what they are already doing. Giving them more money means they will do more of the same. Any boost to the economy will be tiny compared to the cost of this bill.
Back to top Go down
View user profile
 
What will US Corporations do with their 14% Tax Windfall?
Back to top 
Page 1 of 1

Permissions in this forum:You cannot reply to topics in this forum
 :: Topics :: Government & Finance-
Jump to: