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If a company has made a profit then it's too late to reinvest that money.It is money that the company didn't find a way to spend. Profits sit in bank accounts
by dingaling 10y ago
If a company has made a profit then it's too late to reinvest that money.It is money that the company didn't find a way to spend.
Profits sit in bank accounts or are distributed to shareholders. It might make sense to grant companies a tax-free allowance equivalent to six months of operational costs, but corporation tax is designed to deter hoarding and thereby force money into circulation
- nradov 10y agoThere is no such thing as companies hoarding money. They don't stick billions of Euros in a big vault somewhere. They deposit it in bank accounts (or other similar investments), and then the banks put some multiple of the deposits into circulation through fractional reserve lending.