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The article fails to point out that if corporate tax rates are reduced wages and/or shareholder profits have to increase—the money must go somewhere. So, if wa
by witty_username 10y ago
The article fails to point out that if corporate tax rates are reduced wages and/or shareholder profits have to increase—the money must go somewhere.
So, if wages are not increased, company will make more profit after taxes and thus shareholders will make more money.
- nicky0 10y agoOr they just keep it in a cash pile like Apple.
- bhickey 10y agoApple's cash pile includes a lot of overseas holdings. There simply aren't enough things for them to spend $60bn on. They don't want to repatriate the money because they'd get hit with (wait for it) taxes. If we eliminated corporate taxes while raising capital gains taxes, Apple would have an incentive to repatriate the cash and the piper would still get paid.
- nicky0 10y agoOr they just keep it in a cash pile like Apple.
- forgottenpass 10y agoThe article fails to point out that if corporate tax rates are reduced wages and/or shareholder revenues have to increase—the money must go somewhere. Of course they fail to point that out, because there is a strong counterfactual in the way many rich companies let cash sit in bank accounts for an indefinite amount of time.
- witty_username 10y agoPerhaps your wording was metaphorical, but the cash does not sit in bank accounts. Apple is investing the cash pile in securities. (http://www.marketwatch.com/story/apple-isnt-really-sitting-on-216-billion-in-cash-2016-01-26 http://www.marketwatch.com/story/apple-isnt-really-sitting-o...) If corporate tax is abolished, Apple's cash pile would enlargen and thus Apple's investments would increase which would increase other company's stock prices or bond yields.