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Hassett Changes Story on “Repatriated” Foreign Profits Under New Tax Law


#1

Hassett Changes Story on “Repatriated” Foreign Profits Under New Tax Law

Chye-Ching Huang

With new reports that companies are using their windfall from the new tax law in ways that mostly benefit wealthy investors rather than workers, Council of Economic Advisers Chair Kevin Hassett has revised his explanation of how companies will use foreign earnings they “repatriate” to this country under the new law.


#2

Stock buybacks typically yield the highest return on investment in the US at this time. The mandate for CEOs is to maximize their stock prices usually based upon quarterly results and not on long-term investment horizons. Capital investments will be made in lower wage nations in which environmental constraints are minimum as such will yield a higher rate of return. None of this is surprising and everything fits tightly within the expected consequences of intra- and international inequities in wealth documented so thoroughly by Piketty in Capital in the Twenty-First Century (2013). Oh, and yes, it sucks.


#3

“But it’s a shame that he ignored the record when he was pushing for Congress to pass the new tax law.”

A shame? People like Hassett have no shame. He is a scurrilous sycophant of predatory capitalism.


#4

Who didn’t see this coming? Give these greedy scum a inch, and they screw you all over again.
It appears Morgan Stanley can’t add, (no surprise there), what happened to the other 27%? CEO’s pockets?


#5

“But it’s a shame that he ignored the record when he was pushing for Congress to pass the new tax law.”

He didn’t ignore anything. He knew full well what would happen and enriching the already rich is just one of the features that the law was designed to produce.


#6

He didn’t ignore the track record, he purposely bullshitted in an effort to rewrite the track record.

He’s paid to do precisely that.