I recently heard Joe Biden promise to give thousands of dollars to people in various categories and would pay for this by taxing corporations. This is a flagrant unethical use of government assets to buy votes. But then, it is understandable that people who have mooched on taxpayer money for years to come up with this kind of con job.
These corporations will have to find the tax money someplace, and the typical places include payroll (layoffs), capital expenditures (kill expansion programs and new jobs), and dividend reductions.
Who are owners of these corporations: average “Joes and Jolenes” who have invested in corporate shares as part of rainy-day savings and retirement planning. Most pension plans (unions especially are pensions oriented) are also highly dependent on such investments and the dividends earned. Farming out manufacturing to slave labor countries will increase. The attack on corporations will drastically shrink share values by 30- 40-percent (DOW was at 18,000 in October 2016 compared to the current 28,000 plus), which will shrink rainy day and retirement savings and will cause pension plans to be badly underfunded.
Corporations and governments will have to find money to rebuild the pension funding, resulting in further belt tightening. Some corporations already in financial straits will end up folding. Result: continuing reductions and layoffs. The layoffs will reduce buying power of affected people, reducing purchase of products and resulting in a ripple effect of belt tightening.
So, the Democrat trickle-down means a ripple effect on the worsening of economic conditions for all. If they are unhappy with the high compensation to high management, they should focus more on them than on the corporations which feed and clothe us.
James Powell, Lima
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