It's a clear sign of trickle down don't.
Repatriating cash from overseas profits will lead to more investment, expanded production, more jobs and higher wages, says the President-elect.
More likely, however, bringing home the money will stay close to the pockets of those who control it, namely corporate executives and major stockholders.
In theory, cutting taxes as an inducement to bring back profits earned and stashed overseas would enable U.S. firms to reinvest the funds for expanded production and more jobs.
An equally valid theory, however, would be that firms use the extra cash to pay down corporate debt, buy back stock or give senior executives a bonus or a pay hike as a reward for their cleverness.
No matter which method the firms choose, the value of the stock the execs hold will rise along with stock on the open market.
So what happened to the jobs?
No comments:
Post a Comment