Corporate tax rate cut used to buyback stock and layoff workers.

The corporate tax rate was cut from a high of 35% to a high of 21% as part of Dirty Donalds tax cuts for the wealthy,and it is fully living up to that name.At least three major corporations have used their tax cuts to cut staff and reduce benefits.AT&T,G.M. and Wells -Fargo Bank have all laid off thousands of workers including closing call centers by AT&T,closing manufacturing plants by G.M. and closing bank branches and transferring work offshore by Wells-Fargo.The tax windfalls they reaped were utilized to buy back their own stocks driving up share prices and enriching all corporate executives and board members.So while Dirty Donald espouses bringing jobs back to America his actions are having the exact opposite effect.Corporations realized at least $1 TRILLION in tax cuts for 2018 with G.M. paying no taxes.Once again CAPITALIST GREED CONQUERS ALL!!

 

When Trump made his case for tax cuts, I knew from the get go that they would only benefit the 1% and those close to them in wealth. That's the way the government works in this day and age especially when republicans control things. Not that the democrats are blameless; after all there are plenty of democrats in the 1% crowd as well.

We Americans are such suckers when it comes to promises made by politicians in this country; they are like shoe salesmen; they'll tell you want you want to hear as long as you pull the lever for them on election day, then once they win, they suddenly forget their campaign promises made until its time to run again for election. It's cyclical process that happens time after time. You'd think we'd all learn but alas we have short memories. It's one of the flaws in our system of government in this country.

 

The inflated stock market numbers and profit jumps are certainly not a boon for America.

 

You'll get replies from the right that many companies used the tax cuts to pay workers a bonus. And it's true, but what costs a company more, ... a $1,000 one-time bonus, or a raise of $3/hour ($6,000/year) year after year?

 

yep, last year they did, this year not so much... they will get these tax cuts every year going forward... but as I said then, the first year is seen as extra to the company, every year after that, not so much as the tax cuts are already taken into account, so no more tax cut bonuses for employees

 

Yep. We were also told that corporate taxes are just built into prices and, thus, passed on to customers. If that's the case, where is my price cut from the corporate tax cut being passed on to me? I haven't seen it, all I see is increase in prices.

Could it be that this is more voodoo economic propaganda that the GOP needs to use to sell their tax cuts for the fat cats by pretending they are for the little guy?

 

Yep, now the tax cuts are already built in everyone's bottom line, so the benefit will disappear. That's the nefarious thing about tax cuts. They DO stimulate the economy (especially when they are on the national credit card as stimulus spending), but their stimulating effect doesn't last long. That's why another tax cut is needed soon, and then another.... until the federal government is fully bankrupt.

 

Of course they are. No one is going to move their company back to a nation were their taxes will go up in a matter of 5 years. Taxation is theft anyways.

On your other point, if you conditioned your customer base to purchase something at a set price, and then your expenses dropped say $10 per unit, why would you lower your sale price by $10? At best, I would guess a company to lower the price of their product by $5 to maybe get a few more customers, but it does go to make the company more viable for a longer running company. You never know when the next socialist democrat may come in and levy more taxes and regulations that you would have to cover in the future that may or may not cause your business to go completely bankrupt.

 

Exactly how does a tax cut cause a reduction in staff? It does not reduce the need for the staff nor does it make it more costly to keep them which would be he primary reasons for letting them go.

 

I don't know, maybe you would lower the price because of competition? Now, every company has more money in their pockets, so they could undercut the competition, make more revenue?

At least that's what we are told by the economic simpletons, who only think about supply and demand and NEVER about the macreconomic and behavioral economic effects.

As to behavioral economics: A tax cut feels like an unearned windfall. And that's how it is used: Frittered away carelessly like a $20 bill found on the street.

 

Okay first GM didn't lay off because it got a tax cut it laid off because it lost money. And it lost money because of the production agreements it made to get that government bailout. Att laid of call center personnell because it no longer needs that many call takers. In certain respects we've all but made the job less legal than selling marijuana. I'm expecting all but local banks to exit California in droves.

 

Ding ding ding!!!

 

I see that you didn't pick up on the fact that price cuts and pay increases are mutually exclusive operations...

 

I see you're utterly confused per usual.

 

Well, sometimes you need to close some branches and lay off workers just to improve company’s overall efficiency. The employment market is great now, those who were laid off will easily find another job.

 

I see that you didn't pick up on the fact that neither of the two really happened to a significant extent. Instead, the cuts went to share buybacks, fattening the bottom line of the CEOs.

 

It's not your money.
Pay higher rates.
Pay your fair share

 

Raise the corporate tax rate and see how many employees get laid off. When a company's overhead goes up they don't start hiring.

 

You cut the corporate and they bought back stock and fired employees to artificially their stock.

 

People who don't own a company or have never run a company seem to know a great deal about running a company.

 

how many new call center employees overseas to replace them?

 

Why do right wingers hate truth so much??

 

And couple tax cuts with increased spending on military etc,. and what do you get?

The full impact of this transfer or wealth to the richest Americans is starting to be felt.

When the economic cycle starts to turn and the sugar rush of tax cuts is gone.......then ordinary Americans will see the con.

 

And then, the GOP will blame the Dems at will want to balance the budget -- on the backs of the poor and the sick. it's not like it has never happened before.

 

Lots probably. Irs damnhard to enforce US law in India or Korea or Taiwan.