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Originally Posted by Jason14h

I was making a statement that the biggest issue with trickle down economics is the current tax structures for corporations and the leadership of said companies actually encourages hoarding cash and share buybacks instead of returning the funds to the employees in wages.

And I’m responding to your statement/argument of whatever else you may want to label it as by calling BS. The tax structure has no impact on the employer’s decision to keep more money to themselves.

Businesses are making the smartest decisions to pay the least tax. The same as every non business person on the planet does ( or should do )

By your logic it would also be the smartest decision to pay their employees the least as well. See how it has nothing to do with the tax structure?

If it made more tax sense to pay your employees a higher wage (cost for the business) as opposed to other options they would. However , then as a country you wouldn’t be competitive to attract companies and they can operate on other places cheaper. - and most employees would rather receive stock and see buybacks for cheaper tax rates vs a flat wage increase if they were smart.

Business owners have been making similar arguments since before slavery was outlawed.

Your comment about the majority of employees preferring to receive stock and buybacks in exchange for keeping corporate taxes and their wages lower is in my opinion asinine given the fact that you’re suggesting they would prefer lower wages in exchange for something that the majority of workers don’t receive anyways.

And sure companies could just increase their costs for no reason other then altruism, and then they go broke and have no employees !

Really? You think a company like amazon would go broke if they paid their employees 5% more? I don’t agree with that at all but I’ll gladly hear your argument.

I’d argue the increase in pay would have a much higher probability of trickling down into the hands of others because lower to middle class working people tend to spend their money rather than hoard it. This would lead to busier businesses needing to hire more people or risk losing out on the additional business because they can’t service their expanding customer base. A tax break on the other hand only guarantees that the owner of the business will get to keep more of their profit, so it really only trickles up.

Tax cuts are usually to entice companies to operate in your country and invest their capital in your country. So while it may not trickle down and actually increase wages, the other option is no company in your country , no wages, and higher unemployment.

Tax rates are one of many factors that determines whether or not a market is suitable for investment. Trickle down economics like any good lie uses a little bit of truth and plausibility to make people believe it, in this case trying to convince working people that they stand to gain from giving more money to the people who are already running profitable businesses while trying to pay them as little as possible.