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Where companies' new tax savings will likely go

Rogue Valley

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Where companies' new tax savings will likely go


Related: Here's what America's biggest companies plan to do with all that cash coming back to the US
 
as companies pay their dividends, where do you think that money goes?

overseas?

into the economy?

into other investments?

i mean do you really think that the vast majority never sees the light of day?

we are nearing retirement. my wife and i are counting on the dividends to supplement our social security checks so we can continue our current lifestyle. i wonder how many other people use them basically the same way?

not just the .1% own stock and get dividends....regular people do too
 
Geoist said:
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Evening- Way I look at it is pissing on their heads -the lower income levels/middle class.
IIRC this policy did not work well in the Great Depression. May have worsened it.
And yes I do believe the world is headed for one hell of a depression.
 



And so it has been since 1776. They had no middle class then, they will soon have no again.
 
Fearandloathing said:
And so it has been since 1776. They had no middle class then, they will soon have no again.
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What a mess, and the costs will be borne by the poor/lower incomes.
 
Geoist said:
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Executives will see hefty pay increases and bonuses. Board members will see hefty increases. They already make more than the average American for attending one meeting per year.

This added revenue will help the big Corporations to operate at a loss in some segments, which allows them to put the small companies out of business. This is a common practice of large corporations.
 
RetiredUSN said:
Again...............another hack post regarding corporations, while disregarding the benefits for small businesses
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Benefits like merger acquisition? That may be good for some of the small business owners who don't mind early retirement, but not good for the consumer/worker and economy as a whole.

Other corporations are expected to use the windfall to increase mergers and acquisitions (M&A) or invest in automation. “Industry executives have been eagerly anticipating tax reform in earnings calls, interviews and casual conversation all year. Multiple CEOs have projected major M&A activity will follow if any kind of corporate rate reduction is finalized, further accelerating the rapid pace of consolidation in the industry,” wrote one industry publication about how waste companies are anticipating tax reform.
https://theintercept.com/2017/12/19/tax-bill-corporate-cut-stock-buyback-republican/
 

The idiots will think this is a great idea even as they get laid off, can't afford college for their kids, medicine for themselves and housing in nice neighborhoods. Then, they'll jump up and blame liberals. After all, we saw them do that the last time they lost their jobs, houses and medical coverage.
 

I beg to differ- The R Party went thru a period of tired on being lied to, broken promises and such. Much the same happened in the Dem Party with Bernie's run.
Trump promised health care- as in fixing the ACA - what have we seen? He promised not cuts to Social Security-Medicaid- Repubs planning significant cuts to pay for tax cuts.
Promised Infrastructure- yet where will the funds come from with an additional - 1.5 or possibly 2 T increase in the deficit over 10 years.

Polls have repeatedly shown the majority of Americans are not in favor of this cut for the wealthy.
As they see what they receive, what they will lose in 2024/2025, along with loss of HCare, jobs lost in the rural community related to HCare.
Promised wage increases and massive investments from Corps- well that ain't gonna happen - from share buybacks, share splits, increased dividends and high on the list is paying down Corp debt.

Add in Repubs were deficit hawks, add in they really kept no promises, add in women voters openly disgusted with the Moore debacle, Bannon's promises to support Primary challenges. 18 election Will be interesting.
I doubt Rep Town Halls will be anything but happy and quiet.

Dems only need 20 or so to cause gridlock in the House- with the Freedom Caucus (approx. 30)as we have seen, they have a hard right wing belief. So if Ryan remains as Speaker, or whoever replaces him, they will need Dems cooperating to pass anything.

Lastly the debt increases are not sustainable.
 

As long as Republicans can get their idiot followers to focus on abortion, gays, guns, and God---no one will pay attention to them picking their pockets.
 
calamity said:
As long as Republicans can get their idiot followers to focus on abortion, gays, guns, and God---no one will pay attention to them picking their pockets.
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Unfortunately, this is probably an accurate assessment.
 
Where companies' new tax savings will likely go
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the majority will go to executive compensation, shareholders, and automation, same as unexpected profits during a good year.
 

This is what I find weird about the argument over taxes. Some seem to think the rich simply sit on their money not doing anything with it. They are taking that money and investing it into other companies and funding innovation that drives humanity forward.
 
JANFU said:
What a mess, and the costs will be borne by the poor/lower incomes.
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The bottom 60% account for 2% of the federal income tax. Whatever happened to paying a fair share?
 
calamity said:
As long as Republicans can get their idiot followers to focus on abortion, gays, guns, and God---no one will pay attention to them picking their pockets.
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Tell me again who voted against cutting taxes? It seems Democrat politicians are the ones who want to keep their hands on your wallet.
 
Helix said:
the majority will go to executive compensation, shareholders, and automation, same as unexpected profits during a good year.
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Precisely. Both the WSJ and Fortune polled CEO's. Less than 25% said they would use the new tax bonanza to expand/hire.
 
Rogue Valley said:
Precisely. Both the WSJ and Fortune polled CEO's. Less than 25% said they would use the new tax bonanza to expand/hire.
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cutting operating costs (other than upper management) is big right now among executives. i doubt that they are going to reverse course on that even if we cut the corporate rate to ten percent. some small businesses might use part of it to expand, though.
 
Nap said:
Tell me again who voted against cutting taxes? It seems Democrat politicians are the ones who want to keep their hands on your wallet.
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Republicans have their hands on your Social Security and Medicare, your education and your medical benefits, your clean air and water. All of them they plan to not just pick, but strip away completely.
 
Rogue Valley said:
Precisely. Both the WSJ and Fortune polled CEO's. Less than 25% said they would use the new tax bonanza to expand/hire.
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Worse. The new tax code now encourages profit taking. So, they won't invest in rebuilding. They'll sell off.
 

What I most dislike about the Trump/Republican tax plan is the shameless cynicism with which it has been peddled. Recall how it works: The government borrows $1.5 trillion over a decade and instantly uses that money to cut taxes for major constituencies — workers, families, small businesses and big companies.

The handouts aim to buy votes. This is borrowing to bribe. It’s not subtle. If it’s not cynical, what would be?

Democrats can scream all they want about inequality, but the Republicans will have plenty of money to distribute. The nonpartisan Tax Policy Center (TPC) estimates that all income classes will receive cuts and that, in 2018, only 5 percent of taxpayers will experience higher taxes compared with present law. The figure rises to 9 percent in 2025.

It’s true that the biggest cuts go to the richest taxpayers, but the main reason for that is that these people pay most of the taxes. In 2018, taxpayers with $200,000 to $500,000 of income would represent 6.6 percent of taxpayers, pay 24.1 percent of all federal taxes and would receive a $6,560 tax cut, equal to 2.9 percent of their after-tax income, according to the TPC.

By contrast, taxpayers with incomes from $50,000 to $75,000 represent 13.9 percent of taxpayers, pay 6.3 percent of all federal taxes and would receive a $870 tax cut, equal to 1.6 percent of after-tax income. . . .
 
calamity said:
Republicans have their hands on your Social Security and Medicare, your education and your medical benefits, your clean air and water. All of them they plan to not just pick, but strip away completely.
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It is simply a difference in how each view the role of government.

Republicans would rather people keep the money they earn so that they can decide what is best for themselves.

Democrats would rather make those choices for you by taking your money through taxes and issuing out services as a government program.

I lean more to the Republican side of thinking because I think individuals have a better understanding of their needs then some politician that has never met them or in many cases never even been to their state.

I will concede the clean air and water part though. I agree more with Democrats on environmental issues except when they take it to the extreme.
 
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