Mark Cuban: Why Corporate Taxes Have Nothing to Do With Job Creation

Mark Cuban appeared on CNBC yesterday to talk about Warren Buffett talking about taxes. Right off the bat he said that the notion that cutting corporate taxes would lead to more hiring is “nonsense.” He said arguing for lower corporate taxes is “the right thing for [CEOs] to say,” but that in reality, taxes are “far down the list” of considerations large corporations make in hiring. His thinking: it’s much more about market positioning and competition.

6 comments on “Mark Cuban: Why Corporate Taxes Have Nothing to Do With Job Creation

  1. Life guards have nothing to do with saving lives either – statistically speaking. The issue with corporate taxes is that corporations here in the US don’t pay them because they have found ways to shelter their income offshore. GE has moved more than 250,000 jobs outside of the US so that they could reduce their exposure to US taxes. What if we could come up with a fair corporate tax system that would tax income once and not two and three times at the world’s highest rates? Would more US companies choose to keep certain operations onshore? Those might be jobs not LOST. Would more US companies choose to bring BACK certain operations to the US? Those might be jobs regained.

    Mark is right – corporations aren’t looking at the tax rate to determine hiring – but they do look at the bottom line when hiring. Taxes impact the bottom line and as a result they impact hiring indirectly. Lets figure out how to get our best companies – companies like Google and GE – to stay here in the US and earn their income here so they pay income taxes (oh and hire more folks here rather than in Ireland).

  2. i thought i was great when Cubes told the talking heads that he had more than 50% of his wealth in cash and they couldn’t believe it … Cramer even barked “you only hafta get rich once, righjt?”

    i mean, you hafta invest, right?

    they asked him if he trusted the stock market and he said it’s a place for hackers trying to game risk and no longer something used to provide capital to companies

    he also “how much more do you need?” and they seemed perplexed

    cash is king, baby, love this dude

    http://www.youtube.com/watch?v=8G4Mq8cfeso&feature=related

  3. Word has it Cuban won D’s “CEO of the Year” award this evening at SMU – except he was unable to accept the award because of “negotiations” taking place with the NBA. (Not likely.) Nevertheless, congrats to Mark. We Mavs fans are certainly thrilled to hang on to the Larry O’Brien trophy here in Dallas for a while. But when 475 or so CEOs voted, is that why Cuban won?

  4. Brooks: Like every year, D CEO magazine’s CEO of the Year is picked by respondents to the annual SMU Cox “CEO Sentiment Survey.” Cuban had been planning to attend last night’s event (“his people” did a walk-through the day before) but late yesterday afternoon they said he was still in New York and couldn’t make it.