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by ajmadesc 1829 days ago
spending on RnD is equally incentivised. RnD increases share price which would tax free increase net worth.

>find even more creative ways to give it to themselves

This is not a good argument.

2 comments

>This is not a good argument.

That is not a good rebuttal, it ads nothing to the conversation except to say "I disagree" in a slightly more adversarial tone.

It need more explanation: Is it a bad argument because you think giving it to themselves is okay?

Or is it a bad argument because you don't think that would happen?

If it's the later, recent events show you're incorrect: corporate tax reductions were used in stock buybacks that significantly benefited upper management by selling their own stock back into the stock price increases.

And clearly R&D was not incentivised under those tax reductions. Also R&D is a long term investment. There's no reason to believe the short term thinking that often governs corporate decisions wouldn't also win out here. Companies that try value R&D would continue, and those using it simply to avoid taxes would reduce or stop investing in it.

Acknowledging real behavior is not a good argument?