CEO giving tax cut to Shareholders-not raising wages.

Discussion in 'Politics' started by Gatoravatara, Nov 29, 2017.

  1. Gatoravatara

    Gatoravatara Protaganista

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    "Major companies including Cisco Systems Inc., Pfizer Inc. and Coca-Cola Co. say they’ll turn over most gains from proposed corporate tax cuts to their shareholders, undercutting President Donald Trump’s promise that his plan will create jobs and boost wages for the middle class.

    The president has held fast to his pledge even as top executives’ comments have run counter to it for months. Instead of hiring more workers or raising their pay, many companies say they’ll first increase dividends or buy back their own shares.

    Robert Bradway, chief executive of Amgen Inc., said in an Oct. 25 earnings call that the company has been “actively returning capital in the form of growing dividend and buyback and I’d expect us to continue that.” Executives including Coca-Cola CEO James Quincey, Pfizer Chief Financial Officer Frank D’Amelio and Cisco CFO Kelly Kramer have recently made similar statements.

    “We’ll be able to get much more aggressive on the share buyback” after a tax cut, Kramer said in a Nov. 16 interview.

    https://www.bloomberg.com/news/arti...ium=social&cmpid==socialflow-twitter-politics
     
  2. Gator Fever

    Gator Fever Senior Member

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    When money isn't as tight companies are more likely to hire. I will say all this automation is going to be a big issue in coming years however.
     
  3. pilot-in-fla

    pilot-in-fla Deplorable
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    Letting people and corporations decide how to spend their own money instead of letting government bureaucrats decide for them. That is a scary thought for big government loving liberals.
     
  4. Gatoravatara

    Gatoravatara Protaganista

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    My taxes are going down, and my girlfriend's taxes go away for life. But yay middle class!! They get to pay more.
     
  5. Concrete Helmet

    Concrete Helmet Hook, Line, and Sinker
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    Wrong....and IMO the only Corps. who should be getting tax cuts are the ones under 100 employees and based 100% in the US.....Way too much foreign influence on the major corps......they need to be penalized until they move all operations and employment to the US......
     
  6. Traumagirl

    Traumagirl Taken

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    Already said this. Cutting taxes on small business will help, repatriation will help, cutting corporate tax rates will help shareholders not change the way CEO's hire and invest. And the rest, helps the poor with one kid or less, or the rich because of the estate tax, in between bad or iffy.
     
  7. Detroitgator

    Detroitgator General Factotum
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    Is the SaLT deduction still in, or out?
     
  8. Gatoravatara

    Gatoravatara Protaganista

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    I dont think you get what is going on. I hope you are not depending on SS. Because step 2 of the scam is claiming we have to cut SS because of the deficit- caused by giving tax cut to me an my girlfriend. So we get more money, and middle class gets SS cuts. and higher taxes. I know Fox will never tell you this, because it is not their job. They loaded the crumbs on the front end, so that next year the middle class will get their $60/ month. Candy bar money. Then a few years later they jack up. Great scam. Then that $60/expired. Meanwhile, what happens to the wealthy? Their taxes go away permanently. I know someone whose taxes will go down by $300MMish. Yay middle class!!. But I feel for the Repubs. They have no choice. They have to do this or their donors will abandon them. But if you want to believe that this is a middle class tax cut, who am I to stop you. Republicans are counting on people caring more about the letter (R or D) than their pocketbook.
     
  9. Gatoravatara

    Gatoravatara Protaganista

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    State and local deducts out. Cali is getting crucified.
     
  10. Traumagirl

    Traumagirl Taken

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    Not out limited to 10000.
     
  11. pilot-in-fla

    pilot-in-fla Deplorable
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    Too bad if left at all. Why should high tax states have those taxes subsidized from taxpayers from states with responsible governments?
     
  12. Detroitgator

    Detroitgator General Factotum
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    But your net is going down?
     
  13. Detroitgator

    Detroitgator General Factotum
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    You’re thinking of prop tax deduction, not salt
     
  14. Gatoravatara

    Gatoravatara Protaganista

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    psychological wage

    No here is what is going to happen:

    1) Rich people taxes will drop sharply or go away altogether
    2) Middle class will not get a raise- the whole purpose of the tax bill according to Republicans. And many will get a tax increase.
    3) The deficit will grow by $1.5T
    4) Republicans will say we have to eliminate SS and Medicare because of the $1.5T hole they just voted for.
    5) The tax cuts will produce no growth.
     
  15. Gatoravatara

    Gatoravatara Protaganista

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    Yes. According to the analysis that I have seen. Anybody who makes over $150K and does not have a mortgage (I'm not sure if the mortgage tax increase is still in the bill) will come out alright. People who earn between $50K-$75K are going to completely get hammered. People who have a lot of children will as well. I already paid off my mortgage and have no children, so my increase is losing SALT deductions and deduction of health care expenses. But I will make that up on lower taxes on investments. My girlfriend will no longer have to pay income tax in her life. What people in her circles do is create a foundation and pay themselves a salary and other operating expenses that are tax deductible. But the GOP is good at scamming people. They are still selling this as a middle class tax cut and that their wages will go up.
     
  16. divits

    divits A Muffin of the Studly Variety
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    And then there's this...

    https://finance.yahoo.com/news/excl...ay-theyd-hire-trump-cuts-taxes-135212711.html

    Yahoo Finance surveyed more than 1,200 business owners November 20–22 and found that many plan to use the savings from tax cuts to spend more and hire more workers. Fifty percent of respondents told us tax cuts would make it more likely that their firms would hire new workers, and 51% said they’d be more likely to increase investment in the United States. Fifty-two percent expected worker pay to rise if their taxes go down, with 11% expecting pay raises of 10% or more. Full survey results are at the end of this story.



    [​IMG]
     
  17. pilot-in-fla

    pilot-in-fla Deplorable
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    LOL -- the GOP is good at scamming people and you get all your information from CNN, the champions of fake news.

    I guess it must be part of the scam that the 1.2% or so of the Obama years is not 3.3% under Trump.
     
  18. Gatoravatara

    Gatoravatara Protaganista

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    They are expecting and not commuting. The good thing about this, is that people will get a tax bill and they will see what the Republicans have passed. If their taxes go up, they know why. If they go down, they will know who to give credit to. Like Kansas, all the promises were made, but it ended up not working out and now the state's finances are destroyed. I don't know what this has to do with taxes, but in this bill, cancer treatments will no longer be covered by Medicare.

    Steve Mnuchin was in a room full of CEOs of major corporations and he ask them if they are going to invest the tax cut, and they said no. It will stay on their balance sheet or used for stock buybacks. I know that is what my company is planning to do as well. Do you need me to post the tape?
     
  19. Gatoravatara

    Gatoravatara Protaganista

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    Dont say I did not warn you. When people realize their taxes have increased, Trump will blame the dems.
     
  20. Concrete Helmet

    Concrete Helmet Hook, Line, and Sinker
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    I tried to explain this to Ava about 2 weeks ago with no luck. Even if the largest corps. don't invest it back directly to hiring it will still increase their profitability which drives their stock higher which along with smaller companies blowing up the labor force with hiring and the average middle class person stands to benefit in 3 ways....1. Competitive job market demands higher wages and greater opportunity......2. Higher profitability in large corps fuel the retirement investments of the middle class,....and 3. Their still getting a small tax cut...
    Is it going to make the middle class feel like Lottery winners? No, but it certainly makes their lives much better for those in the 40K-150K household income range... The ones it most unfair to are those in the 250K range.
     

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