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But you don't increase profits, what you do is spend that money recklessly on R&D that has a lower ROI than if that money was spent outside the company. Howeve

But you don't increase profits, what you do is spend that money recklessly on R&D that has a lower ROI than if that money was spent outside the company. However, once taxes are factored in the ROI is better than paying taxes due to an increase in the share price. So what you incentivize is the misallocation of funds from their most beneficial use outside the organization to something in the organization.

tertius 5y ago
Profits, if not able to be reallocated for more profit should be return to shareholders. Taxes should be taken into account in calculating where the best ROI would be here. Obviously it changes when you would return profit to shareholders.