CEOs not investing if they get their Republican tax cut

[HomerJS]

Republicans main argument for tax cuts are it will help stagnant middle class wages and it will spur investment. So at a WSJ forum in a room filled with CEOs they were asked if you get you ta cut will you make capital investments? Check out the result for yourself.

http://www.businessinsider.com/trump-gop-tax-plan-gary-cohn-bill-2017-11


Meanwhile Trump chief economic advisor Gary Cohn admits why Republicans really need tax cuts to pass. Hint: Its all about the Benjamins

http://www.huffingtonpost.ca/entry/...571e4b0f76b05c4249e?utm_hp_ref=ca-us-politics

 

[Billb2]

It's called fiduciary duty. If Trumpites give a CEO $1,000,000 he has a duty not to give it to his employees!

 

[brycejones]

No one could have seen this coming. Ever...

Except the results of the last several tax cuts for the wealthy.

 

[mcavoy80]

Trickle down economic theory has been proven false several times over since the Reagan era, but proof is just another word for facts...and we know how this administration feels about those.

Sent from my Nexus 6P using Tapatalk

 

[brycejones]

Trickle down economic theory has been proven false several times over since the Reagan era, but proof is just another word for facts...and we know how this administration feels about those.

Sent from my Nexus 6P using Tapatalk

Kansas as a laboratory of democracy went whole hog on trickle down. It failed badly.

 

[s0me0nesmind1]

Only morons advocate this bullshit trickle down notion.

There are a couple things that really drive up wages:

1) Competition. Staying ahead of the enemy (competitor) will drive a company to always try and stay ahead. See Amazon vs. Walmart, Netflix vs. Cable, Tesla vs. Other car manufacturers, Uber vs. Cabs/Lyft

2) Innovation. Similar to #1, but just as important. If there isn't a market for something, companies aren't stupid. If there is a niche market to carve out, they will likely go full throttle.


I mean a clear example is the coal ordeal we are going through. Trump is trying to "innovate" it and roll-back regulations... but in the end there just isn't a market for it. Natural gas is way cheaper and is much more plentiful. No matter how much you try to push stuff towards, no one is going to take the bait.

A lot of people like to associate "wages" with what typical low-scale jobs get paid... which would be your retailer, fast food, etc... These are already established markets. There is no innovation. There isn't going to be any major changes. Thus, the only thing that will ever change these wages is simply inflation. Thinking otherwise is just foolish.

 

[K1052]

Heh...room full of CEOs actually tell the truth. It's going to be dividend city.

 

[SNC]

These tax cuts need to be tied to some sort of increase in pay for workers. If the corporations want to pay less tax then pay the workers better and have them make up the difference.
I was always a firm believer in trickle down, the big problem with it is those that were to start the stream of cash flow downward figured out that they didn't need to. I would be even ok with a provision that makes a business pay more in taxes is they do not increase wages. I'm pretty sure there will be a knock at my door with someone asking for my R card back after that comment. Funds going to government's hoslet to us need to stop, welfare reform has to happen for the little guy, the increase pay from above would help somewhat with this, and the big guy, corporate welfare has got to be ended. When CEOs leave a bankrupt company with a multi million dollar parachute and no concern for how they will be able to provide for their families, while all the others in the company loses everything they worked for, shits fucking bassackwards. Sorry not enough coffee and went on a rant there.

 

[Zorba]

These tax cuts need to be tied to some sort of increase in pay for workers. If the corporations want to pay less tax then pay the workers better and have them make up the difference.
I was always a firm believer in trickle down, the big problem with it is those that were to start the stream of cash flow downward figured out that they didn't need to. I would be even ok with a provision that makes a business pay more in taxes is they do not increase wages. I'm pretty sure there will be a knock at my door with someone asking for my R card back after that comment. Funds going to government's hoslet to us need to stop, welfare reform has to happen for the little guy, the increase pay from above would help somewhat with this, and the big guy, corporate welfare has got to be ended. When CEOs leave a bankrupt company with a multi million dollar parachute and no concern for how they will be able to provide for their families, while all the others in the company loses everything they worked for, shits fucking bassackwards. Sorry not enough coffee and went on a rant there.

Companies already can write-off employee pay. So why would they care about a tax cut off all the savings had to go to employees?

That is what I've never understood about trickle down, companies pay tax on profit. If they spend money on equipment or people, they aren't taxed on that money.

 

[ch33zw1z]

 

[brycejones]

These tax cuts need to be tied to some sort of increase in pay for workers. If the corporations want to pay less tax then pay the workers better and have them make up the difference.
I was always a firm believer in trickle down, the big problem with it is those that were to start the stream of cash flow downward figured out that they didn't need to. I would be even ok with a provision that makes a business pay more in taxes is they do not increase wages. I'm pretty sure there will be a knock at my door with someone asking for my R card back after that comment. Funds going to government's hoslet to us need to stop, welfare reform has to happen for the little guy, the increase pay from above would help somewhat with this, and the big guy, corporate welfare has got to be ended. When CEOs leave a bankrupt company with a multi million dollar parachute and no concern for how they will be able to provide for their families, while all the others in the company loses everything they worked for, shits fucking bassackwards. Sorry not enough coffee and went on a rant there.

If you force companies to raise wages inflation will go through the roof and the world as we know it will collapse. Its better that money goes to investors who can wisely decide how best to deploy it off shore to protect the economy.

/s

 

[K1052]

Its better that money goes to investors who can wisely decide how best to deploy it off shore to protect the economy.

Oh I'll be deploying it offshore alright:

 

[ch33zw1z]

dont forget who were supposed to blame

 

[bshole]

You see people the wealth gap is simply not big enough. Isn't that what all the Republicans ran on after all?

 

[zinfamous]

You don't even have to look back to Reagan, just look at the current growth in record profits over the last 8 years of record corporate growth under the Obama economy, and see if boards have been converting those profits into wage growth and capital investment. This shit proves itself if you take a few minutes to look at it, but the republicans will forever continue to punch you in the face and try to convince you that you're doing it to yourself.

 

[theeedude]

There is no shortage of money. Businesses invest for future demand, not because they have an extra billion on top of billions that were already sitting in their bank accounts.
These taxcuts primarily attack the upper middle class, which is more likely to cut down on demand as a result, to shift money to the top, where it will not create equivalent incremental demand to compensate.

 

[bshole]

There is no shortage of money. Businesses invest for future demand, not because they have an extra billion on top of billions that were already sitting in their bank accounts.
These taxcuts primarily attack the upper middle class, which is more likely to cut down on demand as a result, to shift money to the top, where it will not create equivalent incremental demand to compensate.

Spot on analysis.

 

[Linux23]

There is no shortage of money. Businesses invest for future demand, not because they have an extra billion on top of billions that were already sitting in their bank accounts.
These taxcuts primarily attack the upper middle class, which is more likely to cut down on demand as a result, to shift money to the top, where it will not create equivalent incremental demand to compensate.

/this.

 

[theeedude]

Just do the math, $200K income / $1M house / for your middle class family here in SV, but also OC, NYC, etc.
Say 10% state income tax, 1.3% property tax, that's $30K in SALT. Take away deduction, you get $1K/month hit to spending power. Take away MID, that's another $1K/month.
Now, you may say, screw these "rich" guys. OK, but these people are actually spending what they earn, so what are they going to cut first, spending wise? Maybe those BMW and Mercedes built in the South? Or Fords made in Midwest. Maybe house remodels and updates. It's aggregate demand that matters, and hate "liberal elites" all you want, but aggregate demand includes them. They are the people who still feel financially secure enough to spend money, and, unlike the rich, have a propensity to spend incremental dollar of income, or cut spending by incremental dollar of taxes.
And maybe they'll dump stocks this year, while they can still deduct state taxes on the capital gains. I am seriously thinking about it.

 

[SNC]

1

 

[Jhhnn]

There is no shortage of money. Businesses invest for future demand, not because they have an extra billion on top of billions that were already sitting in their bank accounts.
These taxcuts primarily attack the upper middle class, which is more likely to cut down on demand as a result, to shift money to the top, where it will not create equivalent incremental demand to compensate.

It will, however, put a lot of hot money chasing returns into capital markets kinda like the Bush tax cuts. No Problemo, right? What could go wrong?

 

[darkswordsman17]

That last one should just be the big glass on top of the smaller ones crushed to pieces.

 

[trenchfoot]

dont forget who were supposed to blame

In this example, a GIF is worth a trillion words IMO. Bravo ch33zw1z.

 

[Jaskalas]

Economics is the straw that broke the camels back when to comes to me and the Republican Party. Was simmering for a few years, but boiled over last year when the election forced a decision. If they deserve a vote, the first thing they need to do is accept economic reality. For too long the American people have put their faith in a party and were paid back in mere delusions.

 

[Billb2]

The solution to all this is campaign finance reform and term limits.