Bobcat
Well-known member
- Joined
- Jul 19, 2012
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- Conservative
Haha, no. That doesn't happen. The goal of a corporation is not to reduce prices, it's to maximize profits. Tax savings go to the bottom line directly.
Corporations don't hire based on tax cuts. They hire based on the need for employees. Any corporation that needs employees will hire regardless of taxes. Any corporation that doesn't need employees but hires them anyway with tax savings will be looking for new executive management in the near future.
What corporations have learned in the past few years is that employees (when faced with a bad job market) will work longer and harder for the "privilege" to have a job.
While tax breaks *might* provide enough capital for expansion, no expansion will occur without demand for goods and services.
The Capital Gains tax is a progressive (as opposed to regressive) tax break. This means that it benefits people of higher income more than those of lower incomes. While we all benefit directly from LTCG tax rates, most of us are not able to derive our income almost exclusively from capital gains like many of of the nation's wealthiest.
foolishness ^^^^^^^^^^^^^^^^class envy^^^^^^^^^^^^^^jealousy^^^^^^^^^^^marxism