What do you think about "trickle-down" Economics?

[msc545]

That is where you give tax cuts to large corporations and the rich, and think that some of the money saved might "trickle down" to people who have much less. Does it?

Updates

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[BoopBoopBeep]

Companies get more profit, their stock goes up, our 401k and pension funds go up. That might not have been the intended effect, but taxing the shite out of a company just passes that cost on to the consumer, who may not have the finances to shoulder that extra burden. Not like the company is just going to eat it and absorb the new tax.

[msc545]

That is the way it is supposed to work, but many companies just buy back shares and pay their executives huge bonuses instead of compensating workers more.

[BoopBoopBeep]

Share buybacks drive up the price of the remaining shares due to readjusted allocation (100Bn company went from 80mil to 70 mil shares, that capitalization stays at 100Bn) and all our 401ks go up. What I have a problem with is shite boards that give golden parachute plans to underperforming CEOs. American Airlines for instance. Should have been a coup years ago. Theyhave been a race to the bottom since JAN'18 but their C-suite guys are still there and still getting paid. Start paying CEOs ONLY in company stock and we'll see a whole bunch of economic growth/waste trimming. That ties their fortunes to the future values of their workers plans.

[msc545]

Good info - thanks!

[SnackTime]

Corporations don't pay taxes. YOU pay the taxes for them. The left plays this game every election cycle. They want you to fall for it, and most do. If ONLY McDonald's had to pay a 50% tax, then us poor folks wouldn't have to pay any tax. Would that work? Who would go to McDonald's and pay for a $30.00 hamburger?

Pleeeeeeze don't fuck with Walmart. Us poor folks need inexpensive food. Don't fuck it up by punishing them with higher taxes that I have to pay for. I can't afford to pay their higher tax.

[exitseven]

The theory is a good one. Unfortunately it rarely works in real life. The government gives them a big tax break but instead of investing in the company they either buy back some stock or else give themselves big bonuses.

[msc545]

Exit it isn't a good theory if it doesn't work and it certainly doesn't work.

[exitseven]

The tax breaks are supposed to be reinvested into the company. When Reagan started this it was effective but like anything else the CEOs got greedy.

[msc545]

Exactly.

[GoodGuyBreakingBad]

The rich get more profit than the less rich.

[SnackTime]

Do corporations pay taxes, or do you pay them for them when you go to buy things?

[NaultD]

Piss on my head and call it rain.

With the devastation homelessness causes to humanity and property it clear we need to invest in a solid foundation to build any community. Water the soil, not splash the pretty flower for the garden.

[Astarlessnightsky]

Its a scam by the super rich people to further exploit the poor working class and get even richer.

[JacobJordan]

It doesn't I would know. One of the simplest things I can do is send my wife a bunch of money as "donations for a charity" with a name etc and I get huge tax cuts and all we do is just use the money from that point.

[Soteris]

Trickle-down economics has been one of the biggest jokes in economic history. To put it bluntly, it obviously did not work.

[OtterMan68]

no evidence it helps the economy.

Best thing to do is eliminate all tax deductions except for charitable donations and simply the tax code. Eliminating deductions can mean the gov can lower the tax rates for middle class tax brackets.

[Anonymous]

Bullshit, give the break to citizens looking to make moves I. e. Buying their first home or starting a business

[riverrat3]

It does not work, wages are stagnant, ceos get all the savings

[NathanDavis]

haha...

[ProbablyClueless]

Doesn't seem to work very well.

[RavVid]

Mostly it does. The money will go somewhere maybe in preserving jobs or maybe in new jobs.

[msc545]

The money goes into the pockets of executives or shareholders or it is used to buy back shares. It doesn't go toward preserving jobs and it certainly doesn't go toward creating new jobs.

[Agape93]

It's never worked

[noohair]

It is the reality of how things work.