That's wrong. Most companies have a minimum rate of return they expect to get from any new project before they will consider investing in it. There are always a number of proposals that have varying rates of return. If their costs are increased, then the potential rate of return for each proposal will see a corresponding decrease. That means fewer investment projects will meet the approval of the board of directors. Higher costs means less expansion.
It's as simple as that.
See, your problem is you are talking about the real world. Dragon and his little friends inhabit the world of CNN and HuffPo. In that world businesses are always flush with cash, awarding billions of dollars to CEOs because they have nothing better to do with the money, which is usually lying around heaped up in someone's office. In that world employees work for min wage even though they could be making far more money as brain surgeons and international lawyers because they are too dumb to realize they are underpaid. In that world execs grumble about taxes because it means they have to take time to shovel some of the money in someone's office out the door onto a waiting truck. The stockholders are busy getting enormous dividends that they blow on champaigne parties, when they aren't getting their pictures taken by Vogue. Meanwhile men with 9 children are scraping by on $10,000 a year with no assistance and dying because they don't have health insurance.
Government causes demand by spending money that appears out of thin air, or from Obama's stash. That demand makes other people suddenly run out and buy a kitchen full of appliances because they will save $15/year on electric costs. The rich are largely heirs of big fortunes who are busy touring the Cote d'Argent with Mumsy, and of course don't work.
In their world fining corporate criminals reduces crime while fining harder work increases output. You destroy assets to increase their number and award unemployment insurance to get people back to work. You increase prices to save people money and eliminate competition to make American companies stronger.
Do you see what you are up against here? Quit living in the real world and come on over. They have cookies.