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No, private companies are spending their customer's money. If they spent less, costs to the customers would be less. All our fancy offices, high salaries and bo
by altacc 3y ago
No, private companies are spending their customer's money. If they spent less, costs to the customers would be less. All our fancy offices, high salaries and bonuses need to be paid for and in my company this is partially by selling legally mandated services that people have to purchase.
The regular claims "taxes stop x,y & x" be it risk taking, R&D, investments or whatever, don't seem to actually have much consistent evidence. It's yet another economics theory, most of which are more opinion than proven rules.
What seems to make the biggest difference is the stability of markets and perceived benefit. When tax rates are consistent or even declining, risk taking & investments drops when the economy is uncertain. If a company thinks there's money to be made, they're not going to sit back and do nothing based on if the tax they pay on that is 23% or 25%.
- robertlagrant 3y ago> No, private companies are spending their customer's money. No, their customers' money went on value received, not on internal projects. However you're not entirely wrong: they're spending money that could go on salaries, lower prices, or shareholder dividends. Thus they have three incentives not to waste, as if they do it too much a competitor will beat them. The public sector doesn't have this incentive, as it can just lock people in a box if they don't pay it money.