Greed Isn't Always Good

[JakeStarkey]

Both the workers and America as a whole benefits far more when corporations invest in their workers, R&D, and technology and plant upgrades.

If $$$ to stock holders are in excess of their value, then those excessive $$$ will be sent chasing other $$$s with no benefit to the reality of the world in which we live.

Both the workers and America as a whole benefits far more when corporations invest in their workers, R&D, and technology and plant upgrades.

You bet. That's why we need a competitive corporate tax rate. 15%-20% sounds good.

If $$$ to stock holders are in excess of their value

Huh? Can you translate that into English?

Perfectly clear.

 

[Toddsterpatriot]

Corporations are nothing special, gang, any more than a buncha cows in the pasture there for dairy, leather, and meat.

They need to be groomed and fed and their product extracted.

Any American country that runs away needs to pay an inversion tax differential on an excess profit between what they are paying in their new headquarters and what they would pay in the US.

They still pay American rates on American profits.
They don't want to pay the differential between the foreign rate and the US rate, that's why they keep foreign earnings overseas.
Once they move their HQ overseas, they'll owe zero to the US on their foreign earnings, so how are you going to charge them more than the current differential on those overseas earnings? LOL!

tax break
Of course then can be made to pay that differential in our tax code says they can be made to pay so. Say the differential is 7% between paying here and overseas. Charge them the 7% so that they derive no tax break. Perfectly legal, perfectly ethical.

The differential is between the rate on overseas earnings and the rate on US earnings.
For instance, 35% in the US and 15% in Ireland. If they bring Irish earnings here, they'll owe
an additional 20% on the Irish earnings.
If they move HQ to Ireland, they'll owe 35% on US earnings, 15% on Irish earnings.
Which earnings are you going to boost taxes on? How?

 

[Toddsterpatriot]

Both the workers and America as a whole benefits far more when corporations invest in their workers, R&D, and technology and plant upgrades.

If $$$ to stock holders are in excess of their value, then those excessive $$$ will be sent chasing other $$$s with no benefit to the reality of the world in which we live.

Both the workers and America as a whole benefits far more when corporations invest in their workers, R&D, and technology and plant upgrades.

You bet. That's why we need a competitive corporate tax rate. 15%-20% sounds good.

If $$$ to stock holders are in excess of their value

Huh? Can you translate that into English?

Perfectly clear.

No. What does the phrase "their value" refer to, the $$$ or the stock holders?

 

[LoneLaugher]

Read the two articles posted, please. It requires 10-15 minutes. I'm not interested in Neil Cavuto's take on corporate oppression.

We USED TO do it right. We don't any more. Let's try harder.

 

[JakeStarkey]

The value is in reference to the actual economic worth the $$$ produce: R&D, technology, better employee wages means something of worth to the country, the $$$ of excess dividends means something to the upper 1%.

I am not the least concerned what the far right or libertarians think about this. In the slightest. Excess profits not invested meaningful means everyone suffers in the end, except the 1%. They will be fine.

 

[Toddsterpatriot]

The value is in reference to the actual economic worth the $$$ produce: R&D, technology, better employee wages means something of worth to the country, the $$$ of excess dividends means something to the upper 1%.

I am not the least concerned what the far right or libertarians think about this. In the slightest. Excess profits not invested meaningful means everyone suffers in the end, except the 1%. They will be fine.

The value is in reference to the actual economic worth the $$$ produce: R&D, technology, better employee wages means something of worth to the country

So you feel you can use the $$$ better than the people who own it. No wonder you're a liberal Democrat.
If you want more R&D, if you want more investment in equipment, make it all 100% deductible immediately.
Of course that will reduce government tax revenues, so I doubt you'll support that.

the $$$ of excess dividends means something to the upper 1%.

Pension funds, 401Ks and IRAs benefit a lot more than the top 1%.

Excess profits not invested meaningful

LOL! You're funny. You should start your own company and reinvest 100% of profits and stop
whining about companies you don't own.

 

[Dont Taz Me Bro]

In other words, it's smart to invest in the company you work for and not only reap the benefits of a paycheck for your contributions, but also collect dividends on the company stock. I do that. It's like getting paid twice for the same work.
I'll admit, I'm a small fish in a big ocean when it comes to buying/owning my companies stock (I work for a Fortune 500 company) but I get a dividend payout every quarter and the stock price keeps rising.
What's good for the goose (corporate executives) is good for the gander (peon employees like me), If you aren't willing to invest in the company you work for, you should probably be working someplace else.

I do the same thing

 

[Toddsterpatriot]

Read the two articles posted, please. It requires 10-15 minutes. I'm not interested in Neil Cavuto's take on corporate oppression.

We USED TO do it right. We don't any more. Let's try harder.

We used to have a competitive corporate tax rate.
The entire developed world has slashed their rates, we haven't.
If you want to reduce stock repurchases, make dividends deductible for corps.
Their double taxation makes stock buybacks look better.

 

[Andylusion]

Read the two articles posted, please. It requires 10-15 minutes. I'm not interested in Neil Cavuto's take on corporate oppression.

We USED TO do it right. We don't any more. Let's try harder.

Dude... I'm not messing with you. I read the articles. They are wrong.

That's all there is to it. Just because they say something you already agree with, doesn't mean they are right.

In 1980, IBM stock was selling for roughly $15 a share. Dividend payments were 88¢.

That's a dividend yield of 5.9%. Right?

In 1990, IBM stock was selling for $25 a share. Dividend payments were 1.20¢.

That's a dividend yield of 4.8%. Right?

Today, the IBM stock price is $190. Dividend payment is $4.40.

That's a dividend yield of 2.3%. Right?

Dividend divided by Cost, equals yield. Is my calculator wrong?

What part of this do you not get? The dividend yield, the amount of return on an investment.... for a shareholder has not drastically increased. The reality is that it has DECREASED.

Shareholder profit taking, is LOWER than it has ever been.

You can point to the false article all you want. My calculator proves them WRONG. This is basic math.

Math trumps Political Ideology.

 

[LoneLaugher]

Dividends? You are stuck on dividends?

Try harder.

 

[Toddsterpatriot]

Dividends? You are stuck on dividends?

Try harder.

No, I'm not stuck on any of the things you're whining about.

 

[Andylusion]

Dividends? You are stuck on dividends?

Try harder.

Now, you don't make any sense.

Did you... or did you not... in the first post... say.....

US Corporations USED TO invest about half of all profits into R&D, infrastructure and their employees.

Now...they are returning almost all profit to shareholders.......and, as a result of stock option compensation plans.....that means that the decision makers are lining their own pockets as never before.

I just posted clear cut proof that Walmart was investing MORE than half of their after tax profits, back into the business, and that less than half of that amount was being returned to shareholders.

Additionally I posted proof that the amount of profits taking by shareholders has actually declined in the last 40 years. Not gone up.

Now if this isn't about shareholders collecting profit...... AKA.... Dividends..... if that's not the topic of this discussion, based on your OP.... well then what the crap are you talkin bout Willis?

 

[Toddsterpatriot]

US Corporations USED TO invest about half of all profits into R&D, infrastructure and their employees.

Now...they are returning almost all profit to shareholders.......and, as a result of stock option compensation plans.....that means that the decision makers are lining their own pockets as never before.

In corporations it s owner-take-all - The Washington Post

Not good for America.

US Corporations USED TO invest about half of all profits into R&D, infrastructure and their employees.

Last year, compensation of employees by private industries was $5.916 trillion. They paid another $526.15 billion in payroll taxes for employees.

Proprietors' income last year was $1.3366 trillion. Corporate profits, after tax, were another $1.633 trillion. Looks like employees received more than 200% of profits. Even before employer contributions to pension and insurance funds are included.
Meanwhile, dividends were $959.6 billion, less than 60% of corporate, after tax profits.

U.S. Bureau of Economic Analysis BEA

 

[EdwardBaiamonte]

Now...they are returning almost all profit to shareholders.....

of course thats 100% impossible in a capitalist economy. If a company takes too much in profit, for any purpose, a competitor can take a lessor amount, use the remainder to reduce prices, and thus bankrupt the company that took too much profit.

NOw you can appreciate the beauty of capitalism.