Taxes

Please Clap

JM Ashby
Written by JM Ashby

What will corporations and the rich do if they receive a windfall of tax cuts from our Republican-controlled Congress?

We've seen reports that most companies intend to automate production (replace humans), buy back their own stocks, or pay out more dividends. We've seen reports that investors are betting on automation. We've also seen reports that investors are already buying up stocks in anticipation that the largest corporations will buy them back at higher prices after tax cuts are passed.

We've seen very little mention of any corporations that intend to invest heavily in their own businesses beyond their current capacity and that was apparent at the Wall Street Journal's CEO Council this morning where chief White House economic adviser Gary Cohn did not receive the response he was expecting.


I was just as amused as Cohn is, but for very different reasons.

It may be underappreciated that Republicans are making big predictions about corporate investments and the economy that corporations are not making. Corporations are not even pretending.

Corporations are more accountable to their own shareholders than elected Republicans are to the American public and investors want what they want; they want dividends. I don't know how this could possibly be more clear.

  • swift_4

    Ever see those spycam videos of pets, where the owners say, “Don’t go on the couch while I’m gone!” and the instant they leave the dog goes on the couch.

    That’s pretty much it. “The companies won’t just keep the money we give them!”…

  • muselet

    Gary Cohn is a lot of things, but stupid is not among them. He knows as well as the rest of us—perhaps better—exactly what corporations will do with a tax windfall.

    Yet he feels comfortable asking an ineffably stupid question as a poor attempt at humor.

    Worse, the assembled CEOs and hangers-on laughed. Some have reported it sounded like uncomfortable laughter, but it sounded to me more like knowing laughter: they’re all in on the joke, and the joke’s on everyone not in that room.

    –alopecia

    • Aynwrong

      Trump’s own voters gave these people the ability to tell this particular joke and in the most sublime of ironies many of them are the punchline.

  • ninjaf

    Conservatives are going to have it see it for themselves to believe it is true. Just like they are unable to empathize until something affects them directly, apparently they can’t “empathize” the future when someone is explicitly telling you what their plans are.

    Quit letting the conservative media control their message and agenda and maybe they can figure out which end is up. But I’m not holding my breath.

    • Tony Lavely

      “Conservatives are going to have it see it for themselves to believe it is true.”
      Never happen. It’s a matter of faith to them, and you know what faith is: I believe, therefore it is.

    • Christopher Foxx

      Conservatives are going to have it see it for themselves to believe it is true

      Like they stopped believing climate change was a hoax after they saw the devastation of Katrina?
      Like they stopped believing nothing should be done on gun control after seeing Sandy Hook?
      Like they stopped believing in “trickle down” economics after seeing the deficit bloat of Reagan-Bush?

  • Badgerite

    It looks like we will all be Kansans soon. Ich bien ein Kansan.

  • Aynwrong

    Shocking. Positively shocking.

    • Dread_Pirate_Mathius
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