General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsHow a Company Actually Plans to Spend Its Tax Cut Money
ORO GRANDE, Calif. Republicans have pitched their tax plan as an economic godsend that will offer deliverance from middling growth and set off a torrent of investment, hiring and raises. But at a quarry here in Southern Californias high desert, the outcome doesnt look so straightforward.
The pit of rock belongs to CalPortland, which mines limestone to create the cement that goes into some of the countrys most iconic stadiums and hotels. The company would hardly object to keeping a chunk of profits that currently goes to the government. But the extra cash probably wouldnt be enough for CalPortland to expand immediately in ways requiring serious hiring.
Ten percent extra profit would be good, said Steven Regis, a senior vice president for corporate services at the company. But its not going to fund big projects.
Like executives across the country, Mr. Regis has spent the last few weeks scouring the House and Senate tax proposals for signs of hope for his industry and new sources of pain.
Many economists are skeptical that the tax savings will transform business decisions. And when President Trumps chief economic adviser recently asked a room of chief executives whether lower taxes would prompt them to invest more, only a few hands shot up.
Mr. Regiss deliberations suggest why those executives especially at manufacturers like CalPortland, the companies at the core of Mr. Trumps vision for the economy may have muted expectations.
Many welcome tax savings, but each industry and company will make different calculations about whether and how to spend that money. Much will depend on what customers and suppliers do and, of course, on the vicissitudes of the American economy.
You always have competing interests for that cash, Mr. Regis said. Do you pay dividends? Do you buy new equipment? Do you buy out competitors? Do you add employees? Do you pay employees better?
https://www.msn.com/en-us/money/companies/how-a-company-actually-plans-to-spend-its-tax-cut-money/ar-BBGazql?li=BBnbfcN&ocid=edgsp
Eliot Rosewater
(31,112 posts)overworking people who have no union protections.
The tax plan is premeditated mass murder.
Wellstone ruled
(34,661 posts)here in the Western States,this Industry is mostly owned by a Mexico Billionaire. Talk about a pass through.
marble falls
(57,136 posts)employees? Do you pay employees better?
You see where "pay employees better?" falls in the list,