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To: Dilbert San Diego
Because companies will have more after tax income, and could well decide to expand , when change would lead to hiring more employees as they expand.

The article claims that this tax plan "induces" companies to hire and to raise wages. Increasing after tax income does not do that on its own. Why would companies use that extra income to hire and to raise wages instead of increasing dividends and buying back stock? Companies expand, not because they suddenly have some extra money, but because they believe that the increase in output well generate enough extra profit to justify the expense. The tax cut alone does not do that.

I heard there are also provisions in the bill for tax credits and depreciation adjustments for companies to buy new equipment and buildings, which is part and parcel.of expanding a business.

And what in all that increases wages?

7 posted on 12/20/2017 2:42:15 PM PST by DoodleDawg
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To: DoodleDawg

Companies don’t have to do anything. You are correct.

Nothing in this law requires companies will expand or create jobs or increase wages.

You make it sound as if there are shortcomings to the law because companies may or may not make business expansion a priority. Or perhaps you take issue with the article talking about inducing certain behavior which we can’t be sure will actually happen.


9 posted on 12/20/2017 3:04:14 PM PST by Dilbert San Diego
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