[anonymous5133]

The overall statement is a fallacy, correlation does not imply causation. There are plenty of good investment opportunities out there, the truth is that you need to find them yourself. The next big companies in the world are purely in their "unfunded idea" stage.

Also the whole tax reduction statement is mostly an opinion. From what I've seen, most companies are almost purely motivated by the risk-adjusted post-tax profit that can be obtained from the investment. Every idea on the drawing board is effectively evaluated meticulously on this basis. If that number isn't to their liking then the research/project simply never gets funded. The company might opt to simply do share buybacks or pay a higher than normal dividend. Plus the overall argument is mostly junk because the United States heavily reduces taxes for companies that perform R&D through the R&D tax credit.

[aj7]

1. “Plenty of good investment opportunities” does not treat their aggregate value compared to cash removed from the economy. I reiterate, in plain English. There is more of that cash, way more, than realistic investment opportunities. Don’t believe me? Look at the crazy vanity projects, either started or under consideration. Settlements on Mars. $500B Saudi cities. 2. “From what I've seen, most companies are almost purely motivated by the risk-adjusted post-tax profit that can be obtained from the investment. Every idea on the drawing board is effectively evaluated meticulously on this basis.” I couldn’t agree with you more, at least when it is done rationally. And precisely because taxation is MULTIPLICATIVE, tax rates have little effect on investment decisions. Look at the 1950’s. Indeed, I suspect, (paradoxically?) that high tax rates encourage investment. The investment cost is effectively discounted by the tax rate.