Quote:
Originally Posted by Flash Walken
The problem with this is that it has been proven that these policies do not influence corporations to re-invest those profits.
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So if corporations are not re-investing the money they save on tax breaks, they are either:
1) Distributing more profits to individuals, generating personal income tax
2) Sitting on the cash and not using it at all
Not too many solid business models just sit on excess cash for long periods of times.
In addition, I'm not sure those articles are proving that companies are not re-investing their tax savings. All they are looking at is investment in machinery and equipment. There are plenty of other ways companies can re-invest in their company without buying machinery.