Author Topic: Tax corp cash @ 2% to "encourage" investment (i.e. corp spending)  (Read 1165 times)

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Offline FaC

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The Problem: Corporations are holding a lot of cash right now
The Solution: Tax that cash at 2% to encourage "investment"

When you start to run low on other people's money you should go find another piggy bank to rob. There is a editorial in the WP that seriously suggests that the answer to corporation holding "too much" cash is to slap a 2% tax on the balance. The stated goal is to get the corporations to either invest or disgorge the "excess" cash.

This is pretty far up on the dumb list (or is outright extortion)

"Consider the potential effects of a temporary 2 percent tax on corporations' "excess" cash holdings. With the returns on their cash holdings approximating zero, managers would have to explain to their investors why earning a negative 2 percent return would make sense as opposed to either investing or disgorging that cash to shareholders."

Washington Post

Offline NHSparky

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Re: Tax corp cash @ 2% to "encourage" investment (i.e. corp spending)
« Reply #1 on: December 10, 2010, 08:15:17 AM »
And who defines "excess", pray tell?
“Any man who thinks he can be happy and prosperous by letting the government take care of him better take a closer look at the American Indian.”  -Henry Ford