Our Treaurer isoff with the fairies, page-19

  1. 36,984 Posts.
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    You raise a good point Pugs . Companies are saying with lower taxes they will invest more . What I haven't heard is how that works in practice . I understand that it will free up capital that they could use to invest back into their businesses .

    But , instead of making a larger profit and paying tax , why not borrow more and invest anyway and offset that profit ? Maybe it increases risk a bit but isn't it effectively doing the same thing anyway ?

    Clearly I'm not a business owner . Are there any business owners here that can explain in detail how this might work ?
 
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