Why Trickle Down Doesn't.

Some facts as to why Congress just can't give enough welfare away to their multinational corporate friends. The Institute for Policy Study found that 7 of the 30 largest corporations that were highly profitable in 2013 earned $74 billion in pre-tax profits, paid no taxes. In fact they received $.9 billion in refunds and subsidies. They distributed those funds to their CEOs as wages and to shareholders as dividends.

All big corporations do it. They say they'll leave the country if they don't get subsidies. They say corporate taxes are 35%, when they are in fact 19.4%. That's an all time low, while corporate profits are at an all time high.

At the moment 80% of all the tax breaks that congress is talking about will go to these top corporations, while pundits are blaming Obama for redistribution of wealth, it is happening, but at the other end.

Corporations "Retained and Reinvested" from WW2 to the 70's. Because taxes where high, it wasn't worth the CEOs taking big wages, so they put their profits back into their businesses, improving them, hiring more workers so the money went straight back Into the economy.

Since the 1980's when taxes were brought way down, CEOs started taking huge wages and not reinvesting in their companies. They shifted to "Downsize and Distribute". From 2003-2012 the S&P spent 54% of their earnings to repurchase, buy back their own stock and 37% to pay dividends to shareholders. That's 91% that didn't go to "trickle down" - creating jobs.

Let's understand that "trickle down" was never supposed to work.

Florence Vincent
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