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>> And not through letting a host of major corporations go bankrupt through zero fault of their management/board. I cant not wrap my head around this. How is i
by mtnGoat 7y ago
>> And not through letting a host of major corporations go bankrupt through zero fault of their management/board.
I cant not wrap my head around this. How is it NOT their fault? If you are the one at the wheel, you are in charge, thus you are fault. They could have been planing for a rainy day instead of spending the capital, its entirely their fault! I keep 6 months wages in a savings account because its smart... Corporations can do the same, and many do. The ones that refused, should be left to dry and are entirely at fault.
- crazygringo 7y agoNo corporations do not and should not. If your profits are 5% then for a year-long "rainy day" you'd need to make profit for 20 years and keep it in the bank without ever returning it to investors. That's ludicrous. Look up the "Accumulated Earnings Tax". The IRS essentially requires companies to return their profits to their shareholders each year and not save it, or else face a tax penalty. In the case of something unforeseeable like a global pandemic, both corporations and individuals need to be helped out alike. Companies large or small shouldn't go bankrupt because of something so unforeseeable, and neither should individuals.
- mtnGoat 7y agoi mean you could just pay the tax penalty? and how do some companies get away with stockpiling billions? Apple, Berkshire, as examples.