patrick.net

thomaswong.1986 says

If you really worked in business especially a large public company which
staffs large numbers of Financial Planning and Analysis (FPA) professionals who
make quarterly plans related to top line revenues, spending, and EPS.. you know
exactly that spending no matter what the demand may be will be placed in check..
and the whole forecast will include the tax impact to get to EPS (after tax). We
see this everday during earning seasons announcements. Estimates and Actuals.

Thomas--clearly you are not a big picture kind of guy. Every company forecasts earnings and those forecasts include estimates for revenues, capital spending, fixed and variable costs, earnings, etc. So what?

They make decisions based on forecasted demand. If sales are expected to be up 100%, you can damn well bet that the company will have plans to expand. Conversely, if sales are expected to be down, they will plan reducing capacity and spending, if possible.

Compare that to what they would do if their tax rate changed. If their tax rate is expected to be reduced, the company will simply raise the earnings/share estimate. They will NOT plan to hire.

No company makes day to day decisions based on tax rate.

Kevin says

Taxes don't mean shit.

When you get to that point of $400K per year taxes are simply another cost of doing business.

The employees on the other hand get smacked hard for every dollar they lose.

SFace says

I never met someone who is afraid iof making money because of income tax.

This is a stupid thing, but I was one of those who spent more time trrying to beat the taxes than actually looking at the big picture.

I would have these long complicated discussions with my accountant, who is very nice, and he listened for a couple of years, until one day he just said, "Stop talking, and learn to be a happy tax payer."

Once you get to a certain point in business taxes are just another set of numbers.

Vicente says

brainwashed about the value of MBA degree.

There are a lot factors to determine the value of an MBA. For example, is it one-ply or two-ply?

I mean, Bush had one, right? And that dude was drunk and on coke the entire time he was a bad businessman. Do they teach that at MBA school?

CL says

And that dude was drunk and on coke the entire time he was a bad businessman.

Hey, hey. No need to be nasty, let's be fair.

Bush was not drunk and on coke the entire time he was a bad businessman. At some point he quit the drink and drugs and was a perfectly sober bad businessman for a good part of his career.

leo707 says

At some point he quit the drink and drugs and was a perfectly sober bad businessman for a good part of his career.

I guess if you count the shady Saudi deals at Arbusto, or the Tax-payer subsidized land-stealing eminent-domain abusing Sports Authority deals.

Ahh...it would be nice to have a "businessman" with an "MBA" in the Whitehouse.

Obama hasn't even run a lemonade stand!