Did you know corporate profits are currently at a 70 year high?

[OddBeMe]

Yet still waiting for trickle down.

[joeldalton]

Yes, your supporting lockdowns meant that many small businesses went under. As a result, there's less competition. As you support us engaging in war with Russia and Biden's plan to stop drilling in us, there's less supply of oil and therefore its cost goes up.

[OddBeMe]

You’re an idiot for regurgitating newsmax bullshit.

[joeldalton]

My high schooler is learning the supply/demand curves. I guess you studied econ with AOC.

[Avicenna]

More like Karl Marx

[OddBeMe]

At the Y i’m guessing. Good luck to him.

[Guy___]

Lol is this opinion so complex that it has to come from some news outlet?

[Anonymous]

Trickle down never happens

make your own way in this world
If you insist on working for the system then you deserve what you get

[OddBeMe]

Until you’re too old to work.

[Opinion Owner]

That's why you start investing the moment you start working

[OddBeMe]

I agree. But if they don’t, are we gonna sit back as 40% of old people die of starvation?

[Opinion Owner]

N we set up a Ponzi scheme but call it social security and hey presto

[OddBeMe]

It only looks like a Ponzi scheme because we pay for last generation and so on. But I’m with you on the issues…

[Opinion Owner]

It's a Ponzi scheme that's yet to fall apart thud proving that it is indeed a Ponzi screen

[OddBeMe]

So it’s a 100 year Ponzi scheme?

[Opinion Owner]

Yeah hell Madoff ran his for 45 years without government help

[Anonymous]

Profit margins, the only important metric, are the same at 8% to 10% since the 1800s.

[OddBeMe]

And average job salaries? Do they grow by as much?

[Sargentcaptain]

Fascinating, hey, what other thing is at a remarkable high? I think it ends with -flation. Might that be 'somewhat' notable?

[goaded]

Yes, that's at a 40 year high. Did you know that 54% of inflation in the US is due to profit taking? ↗

[Avicenna]

Well, English and Theater major, what is the current effective corporate income tax rate?

[OddBeMe]

19%. Actual tax rate, around 12%…for some companies like GE who get rebates: 0%

[Avicenna]

OK, so when corporate profits are higher, there is more tax revenue, right?

[OddBeMe]

Yes.

[Avicenna]

So we want higher corporate profits (also for private business investment), but we don't want anti-competitive behavior or corporate welfare, right?

I think that 12% is too low a figure.

Also, GE has had some bad years in the past five or so and likely is carrying forward some losses which reduce their taxes or make their effective tax rate zero (I don't follow the stock anymore, so I'm not reading their 10Ks).

[OddBeMe]

Here’s the problem with that: stock buybacks. We want companies to hire and spread wealth to everyone. They aren’t. They just use their tax cuts to buy back stock and make even more money for their stock holders. Fine that’s what’s best for them.

So maybe we don’t cut taxes for corporations and instead use that money to invest in schools, colleges, SBA loans, etc.

[Avicenna]

Problem is that corporate taxes get passed down to consumers in the form of higher prices, plus a lot of time and money gets wasted on avoiding them and lobbying for favorable tax treatment. Eliminating corporate income taxes does away with that (same for corporate welfare).

As for stock buybacks, remember that companies have a legally fiduciary duty to maximize shareholder value and ROE/ROI isn't always there with investments but may be for stock buybacks. The solution may be to impose a tax on stock buybacks to alter the equation; however, as I indicated malinvestment would be a big concern with the distortion of such a tax. But look at it as a starting point for discussion rather than a final proposal.

Colleges need a better business model than the current one or else a lot more money will be wasted. If they lower their tuition for most programs, then they have a much better case for taxpayer money. With SBA loans, you also have the danger of malinvestment and crowding out the market, so those programs need to be well designed.

[OddBeMe]

Not really, because competition. Every time taxes actually got raised, or loopholes closed, consumer product price moves are nominal at best.

[Avicenna]

I understand this topic doesn't get discussed when you perform Othello, but here is a good explanation:

www.fraserinstitute.org/.../tax-people-not-corporations-publics-misplaced-sense-fairness-costs-economy-dearly

[OddBeMe]

So…college tuition increased because the govt stopped investing in them, infrastructure is crumbling, and we have deficits while corporations have 400% increase in profits.

itep.org/.../

[Avicenna]

No, tuition increased because schools know students can keep borrowing.
Infrastructure isn't prioritized like it should be.

But, sure, if we'd just take profits away from corporations, all of our problems would go away.

The leftist mind at it's best- mindless!

What rate are you willing to pay, Odd- ready for 50% tax rates on your profits?

[Avicenna]

And where do you get "corporations get a 400% increase in profits", English major?

[OddBeMe]

Always love watching right wingers spin out. And do you have something against English majors?

https://fred.stlouisfed.org/series/NFCPATAX

[Avicenna]

Are you that numerically illiterate? And there is no excuse as an English major in particular for not being able to properly use and cite sources.

You linked to a graph. What claim (s) of yours is this graph supposed to support?

[msc545]

Yes, while the rest of us struggle. Where are the tumbrels and guillotines when you need them?

[Sevenpointfive]

no one here plays the stock market