They told us that if they cut taxes on dividends and high incomes, that the wealthy people would take that money and invest it back into business and industry and everything would grow.
Well, they took that money and invested it in offshore bank accounts and houses and cars and boats for themselves. And every quarter they needed to wring out more profits than the last one to keep the stock price going up. This was important because they had developed a system of bonuses so the executives got bonuses based on the stock price. And there was not kind of limit or disincentive to keep the incomes from going up because they didn’t have to pay taxes on increased income any more.
The result was the opposite of investing back into the companies because every quarter they needed to squeeze more money out of the company, leaving less and less for workers benefits, maintenance, safety and improvements.
The real solution is not to cut taxes, but to raise the taxes back where they used to be before this destructive process started. A company should make a profit, but a reasonable one, and not one that goes up and up without limit. That is the way a true conservative businessman would run a company.
Yep, and the clock is ticking away; the “R” word will soon become reality. I still wonder if MSNBC will televise it?
They told us that if they cut taxes on dividends and high incomes, that the wealthy people would take that money and invest it back into business and industry and everything would grow.
Well, they took that money and invested it in offshore bank accounts and houses and cars and boats for themselves. And every quarter they needed to wring out more profits than the last one to keep the stock price going up. This was important because they had developed a system of bonuses so the executives got bonuses based on the stock price. And there was not kind of limit or disincentive to keep the incomes from going up because they didn’t have to pay taxes on increased income any more.
The result was the opposite of investing back into the companies because every quarter they needed to squeeze more money out of the company, leaving less and less for workers benefits, maintenance, safety and improvements.
The real solution is not to cut taxes, but to raise the taxes back where they used to be before this destructive process started. A company should make a profit, but a reasonable one, and not one that goes up and up without limit. That is the way a true conservative businessman would run a company.
Yep, and the clock is ticking away; the “R” word will soon become reality. I still wonder if MSNBC will televise it?