SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : The Obama - Clinton Disaster -- Ignore unavailable to you. Want to Upgrade?


To: stock bull who wrote (52427)7/7/2011 12:53:57 PM
From: Follies1 Recommendation  Read Replies (1) | Respond to of 103300
 
Lets say Apple is thinking about building an iCar, a new automobile that travels through the iCloud. They estimate how much it will cost them and how many they think they can sell. Part of the cost is building the factory. That cost is an investment and can only be deducted from profits over a prolonged period. If they can write off the cost of the factor sooner, their profit picture looks completely different. The tax code may be a deciding factor in building the iCar.



To: stock bull who wrote (52427)7/7/2011 1:42:30 PM
From: joefromspringfield1 Recommendation  Read Replies (1) | Respond to of 103300
 
stock bull said:

"Cutting Corporate taxes, without an increase in demand, will only provide Corporations with more cash to put into the "bank", ie, improve their balance sheets.

Appreciate you thoughts on this matter."

Ok lets assume your are right. Money has been moved from government to the private sector. Small businesses have been complaining that they have problems getting loans? The banks would have more money to lend creating increased economic activity. Since the company has a bigger bank balance they might be more inclined to purchase goods and/or services. If all it did was put more money in the bank, I would still see it as a positive for the economy.




To: stock bull who wrote (52427)7/7/2011 2:14:27 PM
From: grusum2 Recommendations  Respond to of 103300
 
Dale gave you a pretty good answer. i'll make it a little more fundamental.

it's about capital formation. the more taxes, the less capital formation. without capital formation, capital intensive businesses (like factories) would have a very hard time getting started. there would still be a few but not many. and the value added for manufacturing has a beneficial ripple effect throughout the economy. loss of manufacturing is devastating to an economy. abundant manufacturing is very beneficial to an economy. we need lower taxes AND less regulation to create more jobs.

i've said this before, but i'll say it again..

in socialism workers compete for jobs. that translates to less jobs, lower pay and worse working conditions.

it is the opposite with capitalism..

in capitalism employers compete for workers. because they need more workers they offer better working conditions and higher pay. people have a wide choice of jobs to choose from. capitalism is hard on the poor employers and a windfall for workers..



To: stock bull who wrote (52427)7/7/2011 5:55:31 PM
From: steve harris1 Recommendation  Read Replies (1) | Respond to of 103300
 
Currently, corporations are hoarding capital because they have no idea what the future holds.

imho you shouldn't look at it as cutting corporate taxes will create more jobs, look at it as cutting corporate taxes will be an incentive for corporations to remain in the US instead of moving offshore where taxes are much cheaper, thereby in effect, saving or creating jobs here.

Isn't Ireland attracting US business? I think they have a new Intel facility there.
alhambrainvestments.com

Step up to the plate and tell us what you think should be done with the debt ceiling and a good way to create jobs. I'm only suggesting we try what has worked in the past, what is being done now is making things worse.