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The 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 cours
by forgottenpass 10y ago
The 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.