10-09-2016, 10:40 AM
(10-08-2016, 06:53 PM)JustWinBaby Wrote: Because most companies HAVE to borrow to invest, they don't have the cash to cover it.
If this is true then we should still see a bump in investment when taxes are cut. If corporations wanted to invest in growing their bussiness they would use the tax savings to invest instead of taking them out as profit. even at low interest rates it is cheaper to re-invest corpoarte profits than to bowwow money.
The fact is that tax cuts won't lead to more investment. It will lead to more profits for the business owners.
Most big business have used the low interest rates to borrow and buy back thei own stock instead of investing in improving the company.
That is why the claim that lower corporate taxes will grow the economy is false.
