Monday, October 15, 2012

Taxes and Jobs



Romney claims his proposed reduction in corporate taxes will create jobs.  This is bunk.
       US Corporate Cash Pile At $1.24 Trillion, Over Half Located Overseas reports Moodys.
Moody's expects overall business conditions to remain modest over the next year and expects companies to continue to use cash for shareholder dividends, share buybacks and acquisition activity.  Using profits to buy your own stock does nothing for jobs, and just enriches corporate management who own lots of their company’s stock.  Corporations have plenty of cash to increase investment in plant and equipment, but they will not do so unless consumer demand increases.

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