Monday, November 20, 2017

Corporations Add Tax Savings To Cash Pile.

The supporters of the federal tax reform and reduction bill, claim that reducing tax rates will actually increase revenue. The unproven theory posits that corporations will use the tax savings to increase investment in plant, equipment and wage increases. This hope ignores the fact that consumer demand drives corporate investment. Consumers are the ultimate job creators. If spare cash is the panacea for slow growth, a look at the spare cash on hand for the following sample businesses begs the tax reduction point. Apple-$262B Microsoft-$135B Alphabet (Google)-$95B Cisco-$68B Oracle $66B GE-$44B Amgen-$39B Qualcom-$38B Et al.
 Paul Hunter

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