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A comment on Companies Use Borrowed Billions to Buy Back Stock, Not to Invest. Parent comment

Re:Companies Use Borrowed Billions to Buy Back Stock, Not to... by mempko on Saturday August 10, 2019 @08:45PM (#20665487)
If you raise corporate tax, then companies will be incentivized to pay higher wages. Because either the IRS will take the money and burn it, or they can do something useful with it.
[ Parent | on HN ]
Re:Companies Use Borrowed Billions to Buy Back Stock, Not to... by bdowling on Sunday August 11, 2019 @01:07AM (#20666354)
Corporations won't spontaneously pay more for labor any more than they would spontaneously pay more for parts or raw materials. If a corporation chooses to spend more on expenses, then it will tend to spend on things that increase its value. Those things may include spending more on advertising to bring in new business or moving to a fancier office to impresses new clients. Paying more for labor, however, is like paying more for electricity; it doesn't add any value.
[ Parent | on HN ]