Corporations Prepare to Gorge on Tax Cuts Trump Claims Will Create Jobs

[Blue Shoes]

This discussion thread was locked as off-topic by DonViejo (a host of the Latest Breaking News forum).

Source: The Intercept

The official line from U.S.-based multinational corporations is that if they get a huge tax break, they’ll bring home the trillions of dollars in profits they’ve stashed overseas and use it to hire tons of Americans. (Nearly 3 million, says the U.S. Chamber of Commerce!)

But now that Donald Trump’s election means it might really happen, corporate executives are telling Wall Street analysts what they’ll actually use that money for: enriching their shareholders and buying other companies.

Read more: https://theintercept.com/2017/01/05/corporations-prepare-to-gorge-on-tax-cuts-trump-claims-will-create-jobs/

[Phoenix61]

1. I'm not familiar with this source

but that's what they did the last time. They did not create more jobs.

[Blue Shoes]

4. Its the site created by Glen Greenwald.

He started it after he left the Guardian during the Snowden story. Some of the views particularly on security are radical, but they do good, well sourced, reporting on a lot of stories other news organizations don't cover.

[Wounded Bear]

2. The song remains the same...

Bullshit is bullshit, no matter the decade.

[hibbing]

3. I've seen this movie before n/t

[lastlib]

12. Wake me up when it starts totrickle down......

I want to have my cup ready this time........

[NewJeffCT]

5. Corporations and wealthy individuals

almost always use tax cuts to enrich themselves and not do hiring. When they're taxed at a higher rate, they're more likely to re-invest profits in hiring and improvements/upgrades because they don't have to pay taxes on that money.

[tclambert]

6. Tax breaks for the wealthy and for corporations do not create jobs.

We need to kill that goddamn meme. Republicans always claim those tax cuts will lead to an explosion of jobs. Corporate executives say the same thing, you know, not at their own company, but maybe at some other companies. And it never happens. We've run this experiment multiple times, and the results are always next to no job growth, but increases in dividends, stock buybacks, bonuses for C-level executives, and maybe a bump in the price of yachts.

You know who creates jobs? Customers. Rich people and corporations make lousy customers. They like to hang on to their money. (That's kind of required if you want to get rich.) Working class people and poor people make great customers, 'cause they pretty much spend all the money they get. You give poor people some money and they spend it right quick. And like as not, that money gets spent again and again until it finally lands in Scrooge McDuck's bank vault, where he will just use it to swim in.

[haele]

10. Macro-economics 101 for job growth. More customers in more markets means more jobs.

Tax cuts and regulatory cuts do not create jobs. They improve "the bottom line", and pump up revenue, making the affected company a better target for investment because costs are lower, but neither of them create more jobs.

As my BIL, a small regional bank manager said when asking if a tax cut would enable him to hire extra tellers, "Well - no. I don't need any more tellers. A tax cut is just something nice for the bank when working on the bank books."

Now, it is true that if someone who has been working for others has saved up enough money and has a good credit score, tax cuts and easing of regulations may encourage him/her to step out and buy a franchise or create a company of their own, but such measures also increase the risk of fraudulent business/corporations sprouting up to take advantage of these lower costs when scamming eager-eyed investors.
For every four start-up businesses, a business pops up to fleece customers providing sub-standard - or non-existent - products and services using the lure of low costs and easy terms because it's so easy to do when there's few regulations.

Haele

[lastlib]

13. Corporations DO NOT WANT to creat JOBS!!

They want to create PROFITS!! Employees (jobs) are a COST to them! They only create jobs when they have to to maintain profits--which means they have to have more customers with money to spend for their products/services. You are absolutely correct about giving consumer more money to spend.

[jmowreader]

7. Definition of a rich person

Rich person (n) - Someone who will spend $10 to avoid paying $1 in tax.

After Trump cuts taxes, jobs will be created by corporation owners...at Hatteras Yachts, Caviar Store and More, and Honest Nigel's Used Rolls-Royces. They will probably not be created at their own companies, because jobs are the ultimate trailing indicator. You hire because business has increased or you know it will, not not because you think it might. Maybe if we had a president coming in who'd been in manufacturing instead of realty, hotelkeeping and renting out his name, he'd know that.

[Blue Shoes]

8. Or even better

An experienced statesman who can be our president.

[jmowreader]

9. Or for that matter...

A random name out of the Seattle phone book. Anyone would be better than Trump.

[keithbvadu2]

11. What if they write the tax break incentive laws to require

What if they write the tax break incentive laws to require

a minimum net gain of jobs, not just 'new' jobs that replace old jobs?

Too few of the expected new jobs? Tax breaks automatically cancelled and back dated as due.

....... Just dreamin'

[harun]

14. It's going to be bonus time baby !!!!

[DonViejo]

15. Locking...

This is opinion and analysis, not permitted by the SOP of the LBN Forum.

From the SOP of the LBN Forum (emphasis added)

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