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Corporations demanding tax cuts are cutting off their noses to spite their faces

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jmowreader Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-07-11 03:42 PM
Original message
Corporations demanding tax cuts are cutting off their noses to spite their faces
This is the Fortune 500--the 500 largest corporations in America:

(http://money.cnn.com/magazines/fortune/fortune500/2011/full_list/)

They fall into at least one of four categories:

Cat 1: government-owned or government-sponsored entities like Fannie Mae.

Cat 2: entities who sell directly to the United States government, like Lockheed Martin, Caterpillar and IBM.

Cat 3: entities who sell to private consumers using government provided funds (both aid payments and payroll), like all the retailers.

Cat 4: entities whose business requires government intervention, like all the banks and food companies on the list.

In some cases the company is completely dependent on the government, like Lockheed Martin. That company makes absolutely nothing for the private sector--they USED to, but the L-1011's lack of profitability closed their commercial airline business. Everything they have in their product list is either military or some sort of non-military government function.

Wouldn't it make more sense to call for more taxes and more spending because the spending will wind up at least partly in their bank accounts?
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liberal N proud Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-07-11 03:47 PM
Response to Original message
1. Corporations no longer think past the end of their fiscal year
Everything is about turning a dividend (not to be confused with profit) for their investor for this fiscal year. Next year will be dealt with when they get there.

Cuts are made to staff and operations to support the dividends. The company will even close entire facilities or divisions if it will show a way to increase the dividend this year.

Tax cuts are just a way to milk the cow for the farmer.

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shraby Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-07-11 04:44 PM
Response to Reply #1
2. The don't even think past the next quarter.
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jmowreader Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jun-08-11 05:59 AM
Response to Reply #1
3. A few weeks back I did a screed about how the MBAs were fucking up America...
The general consensus of opinion was MBAs are just misguided souls.

The reality is, this emphasis on getting through the quarter didn't happen until everyone HAD to have an MBA and until Reagan took office.
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