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Response to HughBeaumont (Original post)

Mon Dec 4, 2017, 08:48 AM

5. And all the talk about the tax cut helping the rich is overlooking...

the massive increase in wealth that will be generated for the rich who hold most of the stocks which will soar in value because of this cut in Corporate tax rate. Of course the corps will simply do whatever increases their stocks value, like buybacks and dividend payouts. If they had any new ideas for investments they would be doing it already with the funds already available at historically low interest rates. Paying higher wages would be way down on list of what to do with the windfall.

The new method of allowing companies to simply pay taxes to other countries where they are operating rather than to the USA will surely move more operations abroad. The 20% is still higher than many countries so why not continue paying taxes there and now move the profits home without additional taxes to pay out as dividends and to be used as buyback funds? Moving home the estimated 5 trillion in funds being held overseas will still involve paying a tax so why not leave those funds overseas as investments in countries that have cheap labor, good markets and yet lower tax rates? They can then bring the profits from those investments home, now (with new tax bill), without any additional taxes.

Not sure why people are not talking about this.

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