Are Companies and Corporations finding that Tax cuts hold them back?

[pwb]

Would they, don't they, do better selling their goods and services to more people? Tax cuts are old and played out. We want to make and sell and buy. I think more people need to move on and leave the party that is holding us back with nothing but Tax Cuts. JMO.

[Claustrum]

1. Why would they?

They didn't suddenly earn all those money during Trump's tax cut year. They stashed the extra cash in oversea throughout the years during the good time under Obama. Then they waited for Trump's tax cut and they sent those profit/money back to the US. Then they issue stock buyback with those money that they didn't have to pay taxes (or pay less taxes on) and that sent their stock sky high earning them even more money. The companies and corporations didn't lose with the tax cut. It's the little guys like us who doesn't benefit from them.

[haele]

2. Ha-ha. Why have your manufacturing acquisitions spend money making things

When your investment divisions can make more money turning them into pass-throughs - basically warehouses - for cheap offshore knockoffs. Better to turn that money that would normally have been spent making a quality product with a skilled workforce - building up a middle class that will buy your product and pay the taxes to support the infrastructure to build and sell your product - into stock buybacks and dividends to attract more investors that will throw money at you and make your quarterly earnings look better.
1990's/2000's MBA thinking. Economics teaches one that there's a multiplicative effect moving money around. So one can turn businesses into super money generating machines with Global Supply Chains, if one absolutely needs to produce something instead of trading around other people's money to make more money.

I'm being cynical, but I've seen too many capital institutions follow this neo-liberal economic playbook. Because Greed is Good.

Haele