http://www.nytimes.com/2011/01/09/weekinreview/09powell.html?scp=1&sq=corporate%20profits%202011&st=cse
"To gaze upon the world of American corporations is to see a sunny place of terrific profits and princely bonuses. American businesses reported that third-quarter profits in 2010 rose at an annual rate of $1.659 trillion, the steepest annual surge since officials began tracking such matters 60 years ago. It was the seventh consecutive quarter in which corporate profits climbed.
More so than in the past, many American-based corporations earn a great portion of their profits overseas. And thanks to porous tax laws, these companies return fewer of those profits to American shores than in the past.
Interest rates are so low that traders can pile up profits by exploiting the spread between a near-zero funds rate and rates on Treasury bonds. This allows some corporations to mark profits without selling much or hiring anyone."
[less]
Response by needsadvice
about 15 years ago
Posts: 607
Member since: Jul 2010
It's obvious what needs to be done:
Tax the profits, so that there is incentive to hire employees (which are tax-deductible)
Tax foreign profits of American companies. Do not allow tax deduction for foreign workers.
Reduce the spread on Treasury bonds.
Who loses? Wall Street, as the profit numbers don't look so great anymore. Execs as their stock options don't look so great anymore.
Money flowing from Wall Street to Main Street? Money flowing from the top to the bottom?
It's obvious what needs to be done:
Tax the profits, so that there is incentive to hire employees (which are tax-deductible)
Tax foreign profits of American companies. Do not allow tax deduction for foreign workers.
Reduce the spread on Treasury bonds.
Who loses? Wall Street, as the profit numbers don't look so great anymore. Execs as their stock options don't look so great anymore.
Money flowing from Wall Street to Main Street? Money flowing from the top to the bottom?
What a nice change.