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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: i-node who wrote (800056)	8/7/2014 12:34:39 PM
From: combjelly	Read Replies (1) \| Respond to of 1578184

Of course you need investment. Not only money, but 'sweat equity' and education. But it is very possible to have too much investment. It was too many dollars chasing too few quality investment opportunities that factored into the Bellyflop. Shifting income to the top does that. Again, more than 70% of our economy is driven by consumption. Taking money out of the hands of consumers and putting it in the hands of investors as we have done for 40 years has obvious problems. The fact that the economy has not kept pace with productivity increases over that period of time should be your first clue. Which is one of the reasons, too, that the corporate income tax should be totally eliminated. The surge in economic growth alone would more than cover the loss of 200B/y in federal revenue. There is absolutely no proof that would happen. A similar experiment has already been run. The 2004 tax holiday on offshore profits. The results were stock buybacks, higher dividends and a wave of layoffs. Furthermore, we have some experience with this. A similar tax holiday was enacted in 2004, and the same promises were made about investment and job creation. But the evidence shows that "firms mostly used the repatriated earnings not to invest in U.S. jobs or growth but for purposes that Congress sought to prohibit, such as repurchasing their own stock and paying bigger dividends to their shareholders. Moreover, many firms actually laid off large numbers of U.S. workers even as they reaped multi-billion-dollar benefits from the tax holiday and passed them on to shareholders." http://www.cbsnews.com/news/a-tax-holiday-for-repatriated-corporate-profits-the-costs-exceed-the-benefits/ There is no reason to believe that eliminating the corporate tax rate would fare any differently. While there are arguments to reduce, or even eliminate corporate income tax, economic stimulus is not one of them.