Donald Sluthorn @SluthorD25 - Twitter Profile

I'm sorry, but your views and logic is nuts. You obviously did great in a great many things, but if you applied to be a CFO of a corporation with that letter, only a crazy person would hire you. - Sure, my Class C Corp was infinitely smaller, but maybe because I needed to maximize earnings and profits and a billion for you was a rounding error, do I see how your decision-making here is totally disconnected from reality. Cuban: "1. Competition has a far greater impact on operating a business than the tax rate Does the tax rate have anything to do with the business’s ability to compete ? Some may argue that if the tax rate is lower, the company may have some more cash to compete with. But then so would the competition. So that argument doesn’t hold up." - This is painfully obtuse. Companies move from Corporate Tax states (like Connecticut) to zero corporate tax rates like Florida & Texas to save 10%! They're clearly more competitive. I literally did this. - And lowering taxes on American companies makes them more competitive with foreign companies, increasing exports, American jobs, and tax revenue on payroll/income taxes overall, which are the biggest driver of tax revenue, not corporate taxes. Cuban: "2. Companies hire because they need people to compete and keep customers happy, not because of lower tax rates." - Ugh. Yes, that's 'why' they do it. Would cutting 25% of profit spent on taxes (15% Fed, 10% State) vastly ENABLE companies to spend more on hiring and growth towards that end? Yes, obviously yes, it would. It would also vastly eliminate the need for borrowing and borrowing costs, which also makes a business more competitive. Cuban: "3. Companies invest their cash because it's strategic." - Yes. That is one possible reason. The other reason companies spent their profit on extravagances that weren't wholly company growth related was that it was preferable to giving 45% (35% Fed, 10% taxes in CT) away for nothing. So if a new car was needed, it was a BMW instead of a Chevy. If it's going to be wasted, companies waste it on themselves first. None of that means companies should spend that way, but the macro reality is that they do.

0

3

2

207