"The reason is simple: Businesses invest when there is more demand for their products, not because their tax rate is lower. We don’t have a capital shortage now; we have a demand shortage, driven by stagnant wages. Cutting corporate taxes will only lead — as it did the last time we lowered the tax rate for companies that brought profits back to the U.S. — to more money for shareholders and CEOs. Many of the companies who got the biggest tax breaks actually reduced jobs." - The Hill
For a bill that was supposed to make employment concerns reach the top of the list, it doesn't seem that way. Most companies will buyback stock with their newly found tax savings, not hire more employees.
"Many indicators show jobs and wages are on the back burner. Paying down debt and buying stock back from shareholders were the top two goals CEOs mentioned in a survey done this summer by Bank of America (BAC). Mergers and acquisitions was third. Capital spending -- like building plants or upgrading equipment, which can lead to more hiring -- placed fourth." - CNN MoneyThe tax policy is flawed. Big time. Not only does it benefit the wealthy and the corporations, it also screws the middle class in more ways than one. And jobs creation is just another bullet on the list of detriments to the heart of the American economy.
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