Monday, June 30, 2014

Warren Buffett On Taxes, Job Creation, The Coddled Money Class And Shared Sacrifice

Alan: In any given fiscal year, link corporate tax rates to the number of new jobs created.

Companies that create enough new jobs will pay no corporate tax.

Make it worthwhile for corporations to "create jobs" just to secure lower tax rates.

Such "artificial" job creation could take the form of boosting R&D from 8% of a company's budget to 15%. 

Not only would "nothing be lost," a great deal could be gained. 
Think Xerox' PARC research facility in Palo Alto. 

On the other hand, when companies establish themselves as mature "cash cows" whose only intent is to cut cost through automation-linked job elimination, then raise their tax rates.

Simultaneous utilization of carrot and stick provides optimum motivation for job creation.


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