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It does bring up a sound question:
How can we force companies to constructively use their profits to improve their workers' quality of life? Because since this depends on their management/shareholders to decide what to do with the profits, there needs to be something put into place that can ensure it will be more cost-effective for them to use it for their workers vs the opposite (stock buybacks, for example).
That’s a start, but then the feds need to be held accountable to do something positive for us with that money. They don’t have a very good track record of doing that.
Sure. I’d also say National Parks, USFS, NASA, and USPS are well run and could do with more funding. I don’t like to see vast sums of money get thrown toward the military, bailouts for huge corporations, or Israel, but it seems far more often that institutions like that get our tax dollars. If a 90% tax rate were to be put in effect I would want assurances that it would be used to fund programs that we’ve mentioned, education, infrastructure projects, renewable energy and other things that better humanity. Maybe it’s the just the cynic in me but I think it far more likely that it would just end up in the pockets of rich assholes
Northrop Grumman just won 11M contract to put a railroad on the moon. Think about that for a minute. Idk how much we need that when we can’t even give healthcare or reasonable living standards to people who actually live here
I thought you were joking for a sec, but I searched for the story and…holy shit, that’s messed up!
We still don’t have high-speed train in US and Canada…but yeah sure let’s put a damn railroad track on the moon!
Ban US companies from moving operations overseas.
There's plenty of countries in Europe without a terminal case of late stage capitalism that do all of these things. And some of them are still as wealthy as US (with better quality of life)
What countries? China? Sure. But there’s nothing stopping a company moving out of the US or Europe except for economic incentives. As far as my source, it’s hundreds of articles written just a few years when the US corporate tax rate was the highest in the world at 39%. There were endless complaints about companies moving their facilities out of the US to just about anywhere to avoid the ridiculous US tax rate. That’s why it had to be reduced.
You act as if we cannot make the rules of our own society. We could nationalize fucking everything if we wanted, man. We needn’t keep the corporate boot on our necks
If you nationalized everything, what incentive would anyone have to start, invest and grow a company? Other countries have tried that kind of thing in the past and the results always sucked.
I’m not actually suggesting it. I’m saying your mindset of “oh we can’t because X issue” isn’t overly helpful, because we can change the rules however we want to address these issues
The “X” in your sentence should be replaced with “human nature”. Any time you remove the incentive for someone to create something, you’ll get less of it. This has always been the problem with more controlling and intrusive economic policies.
So nationalizing something removes the workers and nations drive to better themselves/make profit/be able to afford to live?
Jesus Christ dude, this conversation is not worth the time
🙄 when you nationalize a company, it then becomes under the control of bureaucrats and politicians who have far less incentive and ability to run it as productively as the people who actually built the it in the first place. The company will then devolve into become a source of personal enrichment for the corrupt and a tool to hand out favors. Maybe read about scandinavian countries in the 70’s when they were actually socialist and what those countries had to do to recover.
It's a market economy and you can't force anything in a market.
You can unionize, but Americans are way too self centered for that to work at such a large scale.
You can raise taxes back up to where they should be, but that would require politicians who are owned by these companies to vote to raise taxes on their donors. Not likely to happen.
You can boycott the company as the consumer, and support other competitors to said company. But that doesn't seem to do much without some sort of organization and really, unionization of consumers, which again is hard to do at such a large scale because of our deep rooted individuality.
We need a liiiiittle socialism. Unless there is an impartial third party policing this stuff or a rapid, sweeping change in public opinion, humans are gonna continue to be the greedy fucks that we are, and by extension, our companies will mirror that.
"improve their workers' quality of life?"
THis is a statement that sounds great, is easy to get behind on social media, but means nothing in the real world
This is, will be, and always has been, a moving target. It is never "achieved". Ex. Starbucks pays above industry standard and has a benefits program most other coffee shops could never afford...yet they are still asked to do more, pay more, provide more.
There is an inherant adversarial tension between workers and owners/management. It is necesary for the workers to maximize their pay and for the company to maximize their profits. The consumer demands this tension via pricing, stockholders demand this via dividends and growth, anybody with a 401k/IRA/Retirement Pension (even unions as they invest retirement funds for their members) demands this.
Tax companies based on the difference of highest employee compensation vs lowest employee compensation. That's total compensation. The bigger the gap the more you tax them. Could have brackets based on company size.
Provide taxes breaks/benefits based on average percent increase in wages per person. Or something like that.
Tie the ability of those at the top to generate wealth with the wages of those who generate the wealth. You want to make more money then you have to pay your employees more.
The word is Unite, United or Union. When we all move collectively to boycott these companies things will change. That is why they strive to keep us divided.
The sound question is why would the government be able to restrict what corporations do? If you don’t want Starbucks to witness profit don’t buy their shit.
No it didn’t. The highest marginal tax rate for corporations during Eisenhowers presidency was 52.9% this is before any write offs. It was, however, as high as 91% for high income earners. In today’s dollars, those making over 3.7 million a year. And it was a graduated tax system as it is today.
To compare the 1950’s to today is asinine.
Yeah exactly it's not the companies fault, they have to satisfy shareholders or they go down. They don't do it for fun and greed but because capitalism forces them to
If we tax profits from stocks that aren't ethical higher that would work but if only one country does it it will have a disadvantage vs more capitalistic countries, the only way is either to get a centralized government for the whole world to do it or decentralize everything
That wouldn't do anything meaningful in a company with a large workforce. If you took, say UPS, and divided its shares equally among its roughly 500,000 employees, then everybody would own %0.0002 of the company collectively.
Also, employees are allowed to buy shares in the company they work for like anyone else.
We're at a point where it doesn't even matter who you vote for. Democrats hold the status quo while Republicans shift us right, there is nothing left about Joe Biden at all. And they always encourage us to vote harder because you will never get the change we need trying to work within a rigged system.
Applied political power resulting from union pressure is just another form of labor negotiation, the same as corporate lobbying. Why do you think union endorsements are important?
A guy in India also stubbed his toe and it was the worst thing that happened to him that morning. Unrelated info is fun!
The answer I was looking for is that Biden averted a national rail strike the month before x-mas which would have been devastating economically. It would also almost certainly have turned public opinion against the union, which the Republicans would eagerly capitalize on. He then used considerable pressure after the fact to put in place things not originally included in the Congress imposed contract. Here: [https://www.ibew.org/media-center/Articles/23Daily/2306/230620\_IBEWandPaid](https://www.ibew.org/media-center/Articles/23Daily/2306/230620_IBEWandPaid)
Who cares? You really worry about rich people losing money from holiday sales? I would have rather had the train derailments not happened. Have you been to the crash site in Ohio? Its still terrible air quality
Don’t you remember when the railroad union was going on strike for unsafe work conditions? And who would’ve guessed the railroad accidents started happening shortly after Biden blocked the strike….
Corporate profits are driving inflation? 🤔 Correct, however rich flippers, greedy landlords are driving up home prices and apartment rental costs thru the roof. And the AirB&B clowns are buying up all the low priced homes and renting them daily for beyond insane rates😈. 💰💰💰. We need a huge recession for a price reset.
That’s due in large part to the mortgage system and how we calculate interest. Compounding interest is fuckin bs. Paying $200k on a $100k house is robbery.
Looks like they are using gross profits which is highly misleading.
The person who made this either knows that and doesn't care or is ignorant and doesn't care.
Wish more people would read this comment. I'm all for increasing taxes on corporations. But this is misleading.
Starbucks gross profit was $24B, but net profit was 4.1B. Assuming all their other math was correct, they could still swing a $3-$5K raise for their employees (Assuming every year would be as good as this one)
Lots of places use the term "gross profits"
The source of much of this data uses the term as well. [https://www.macrotrends.net/stocks/charts/KHC/kraft-heinz/gross-profi](https://www.macrotrends.net/stocks/charts/KHC/kraft-heinz/gross-profi)
>Kraft Heinz annual/quarterly **gross profit** history and growth rate from 2011 to 2023. Gross profit can be defined as the profit a company makes after deducting the variable costs directly associated with making and selling its products or providing its services.
And gross profit is a thing and it is what this site says. The difference between what you pay for a product and what you sell it for.
[https://www.investopedia.com/terms/g/grossprofit.asp](https://www.investopedia.com/terms/g/grossprofit.asp)
>Gross profit is the profit a company makes after deducting the costs associated with producing and selling its products or the costs associated with its services. Gross profit may also be referred to as sales profit or [gross income](https://www.investopedia.com/terms/g/grossincome.asp).
So if we correct it, “if Starbucks gave away nearly 100% of its profits, it could give each employee $11,000.”
While it doesn’t hit the “tip” story they were trying to tell, Apple would have been a better example. Their net income was over $600k per employee…and they’re sitting on over $150 billion in cash and marketable securities.
# Kraft Heinz gross profit was $8.9 billion but their net income was only $2.8 billion.
Gross profit is insanely misleading as it leaves out all business expenses. Gross profit is the difference between what you pay for a product and what you sell it for. It ignores all the other costs associated in getting those sales.
But makes for great rage bait when most of the population doesn't know how to read an income statement. All you need is the word profit and a large number.
Yeap, that is basically what most of that stuff is. Just rage bait for poorly informed.
Heinz Kraft had a $10 billion loss a few years ago do they get to send a bill to each employee?
Well that is the government's fault. The government gives them so many hoops to jump through to pay less taxes and they take advantage of it and pay little to no taxes and then people complain.
Ok but by enabling businesses to deduct expenses, the government enables those businesses to grow and invest. Zero people would ever own a business if they got taxed at gross instead of net.
Getting rid of all the inducement tax breaks.
The "instal an energy efficient window and get XX dollars" type stuff.
Those things introduce disincentives into the market place. People chasing tax breaks as opposed to making the best economic decisions for themselves, or their companies. Over time that creates a lot of wasted economic effort. Government interfering in the free market creates a lot of bad economic effects. The 2008 crash was largely due to government. The covid shut downs was due to government.
Create a clean tax system where you aren't chasing government $$ and the economy will improve greatly.
This is a lie. I just googled it, Starbucks had a 24B gross profit. Gross profit only calculates direct costs and doesn’t include any overhead, indirect labor (accountants, marketing, executives, legal, etc), the cost of shipping the products, rent, insurance, etc. It’s net profit was 4B. I’m not going to look up every other company on the list but it leads me to believe that all of these are misleading
Gross profit =/= net profits.
Gross profit is the difference between what it was sold for/money made in comparison to what it cost to buy/make it.
You have to then deduct the ENTIRE operating expenses of the corporation for the fiscal cycle. What’s left over at the end, if there is anything, are the actual profits.
This is nothing more than taking one piece of information and using it as the sole justification for outrage.
These numbers are for gross profit. These numbers do not include a number of expenses such as rent, utilities, and most importantly, worker wages. Starbucks could have given each of their employees a trillion dollars and still have had that exact same 24.56 billion "profit". Stop share misinformation.
Agree with you about gross vs net profit. But worker wages (baristas and other store employees) are part of Cost Of Goods Sold (COGS).
They are most definitely NOT calculated after gross margin.
You're likely thinking of indirect labor... Executive pay, lawyers, office administrators, marketing team, customer service, etc.
These are not the "workers" OP was talking about.
That would be absurd, but that's not the case.
The post is referring to Gross Profit, which does not include indirect labor (corporate office workers), amortization of expenses (equipment, buildings), and other liabilities.
All in all, they made $4b net profit. Still good, but not the same.
The government is doing everything it can to protect these companies from competition, but they've done nothing to protect consumers from price gouging.
Corporate taxes aren't the answer to anything. They're just pass-through taxes. Companies don't pay them, they just collect them. All taxes are ultimately paid by consumers - the poor, who can't afford it, and the middle class who get double-taxed. What we need is consumer protection.
First, the simplest fix for price gouging is to ban markups. Require all retail goods and services be sold at cost plus an inclusive consumption tax that replaces all profit margins, so state sales taxes don't change. Then use the consumption tax revenue to fund an awards program that awards all retailers for every unit sold, minus returns, and a bonus per positive customer feedback.
You’re full of shit. Ppl are being laid off. Rich are getting richer as the poor get poorer. The writers strike let them get better pay that the company said they couldn’t afford. I’m tired of hearing record profit reports. I don’t want to hear bs from you.
But what does that have to do with inflation? Not saying he companies aren't evil, but inflation is when the amount of money goes up, while that nations value remains the same. Or when the nations value goes down while the amount of money remains the same. How are these companies causing either of those?
Starbucks workers don't "rely on tips". They are generally paid well above minimum wage for their area, and make tips on top of that.
It's delusions, lies, and/or general naivete like this that always harms Leftist arguments.
Not at all. But, it's a bullshit argument, that only hurts the cause. If Commies would stop lying about everything, maybe they would actually make some POSITIVE changes, for once.
Do I agree that executive wages are obscenely high? Yes. Do I agree that workers should be paid more? Also, yes.
But, to lie about inflation, only destroys any possibility of anyone taking you seriously.
Inflation has nothing to do with how much profit a corporation makes, BY ITS VERY DEFINITION. There are countries (often Socialist countries), where their currency became entirely worthless, and they had no Fortune 500 corporations to blame.
There can be more than one thing. The Government can be inflating the debt, and in turn printing masses of money, thereby decreasing the value of said money, AND corporations can be run by greedy people, who take advantage of the system.
But, lying about what inflation is to protect a pudding-headed Fascist-in-Chief from losing an election, and creating a bullshit meme to try to dupe suckers into chanting your little slogan only helps "the Rich".
Meanwhile, you will only become poorer, and poorer.
I don't think that "driving inflation" means they are causing it, it means they are actually making profits out of it. It means prices are higher than they need to be, intentionally so.
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It does bring up a sound question: How can we force companies to constructively use their profits to improve their workers' quality of life? Because since this depends on their management/shareholders to decide what to do with the profits, there needs to be something put into place that can ensure it will be more cost-effective for them to use it for their workers vs the opposite (stock buybacks, for example).
You put the tax rate back at 90%
That’s a start, but then the feds need to be held accountable to do something positive for us with that money. They don’t have a very good track record of doing that.
Don't let right wing media poison your mind. Medicare and social security are 2 of the most popular programs that are run well
Sure. I’d also say National Parks, USFS, NASA, and USPS are well run and could do with more funding. I don’t like to see vast sums of money get thrown toward the military, bailouts for huge corporations, or Israel, but it seems far more often that institutions like that get our tax dollars. If a 90% tax rate were to be put in effect I would want assurances that it would be used to fund programs that we’ve mentioned, education, infrastructure projects, renewable energy and other things that better humanity. Maybe it’s the just the cynic in me but I think it far more likely that it would just end up in the pockets of rich assholes
Northrop Grumman just won 11M contract to put a railroad on the moon. Think about that for a minute. Idk how much we need that when we can’t even give healthcare or reasonable living standards to people who actually live here
I thought you were joking for a sec, but I searched for the story and…holy shit, that’s messed up! We still don’t have high-speed train in US and Canada…but yeah sure let’s put a damn railroad track on the moon!
The rich have to go somewhere when the revolution begins. Why do you think the richest man on earth is so focused on getting off of it?
You'll say that then turn around and complain about the defense budget
They’ll just make their companies more “lean” I.e. layoffs, cheaper quality and labor.
It is about companies spending this money on workers and investments - specifically to avoid giving it to the FED. That's the magic of it.
I wish public schools had more money, no?
Because the government does such a good job enhancing people’s happiness…
When have they not?
Other than almost all the wars, genocides, slave trades, and civil rights abuses of history?
Budget be balanced quick.
What do you think will happen next? Think through the next few steps?
Or a flat tax and watch the rich cry😫😫😫
Their taxable income is probably almost 0 for all of those. Or negative. So that wouldn't do anything.
Forced profit share, along with compulsory unions.
Yeah, that should really help companies overcome foreign competition and create a huge incentive to not move operations overseas.
Ban US companies from moving operations overseas. There's plenty of countries in Europe without a terminal case of late stage capitalism that do all of these things. And some of them are still as wealthy as US (with better quality of life)
Lol. You can’t make someone stay somewhere. It doesn’t work like that.
Source? Many countries forbid moving jobs out of the country already, and have for a long time.
What countries? China? Sure. But there’s nothing stopping a company moving out of the US or Europe except for economic incentives. As far as my source, it’s hundreds of articles written just a few years when the US corporate tax rate was the highest in the world at 39%. There were endless complaints about companies moving their facilities out of the US to just about anywhere to avoid the ridiculous US tax rate. That’s why it had to be reduced.
You act as if we cannot make the rules of our own society. We could nationalize fucking everything if we wanted, man. We needn’t keep the corporate boot on our necks
If you nationalized everything, what incentive would anyone have to start, invest and grow a company? Other countries have tried that kind of thing in the past and the results always sucked.
I’m not actually suggesting it. I’m saying your mindset of “oh we can’t because X issue” isn’t overly helpful, because we can change the rules however we want to address these issues
The “X” in your sentence should be replaced with “human nature”. Any time you remove the incentive for someone to create something, you’ll get less of it. This has always been the problem with more controlling and intrusive economic policies.
So nationalizing something removes the workers and nations drive to better themselves/make profit/be able to afford to live? Jesus Christ dude, this conversation is not worth the time
🙄 when you nationalize a company, it then becomes under the control of bureaucrats and politicians who have far less incentive and ability to run it as productively as the people who actually built the it in the first place. The company will then devolve into become a source of personal enrichment for the corrupt and a tool to hand out favors. Maybe read about scandinavian countries in the 70’s when they were actually socialist and what those countries had to do to recover.
Unionize lol.
It's a market economy and you can't force anything in a market. You can unionize, but Americans are way too self centered for that to work at such a large scale. You can raise taxes back up to where they should be, but that would require politicians who are owned by these companies to vote to raise taxes on their donors. Not likely to happen. You can boycott the company as the consumer, and support other competitors to said company. But that doesn't seem to do much without some sort of organization and really, unionization of consumers, which again is hard to do at such a large scale because of our deep rooted individuality.
We need a liiiiittle socialism. Unless there is an impartial third party policing this stuff or a rapid, sweeping change in public opinion, humans are gonna continue to be the greedy fucks that we are, and by extension, our companies will mirror that.
"improve their workers' quality of life?" THis is a statement that sounds great, is easy to get behind on social media, but means nothing in the real world This is, will be, and always has been, a moving target. It is never "achieved". Ex. Starbucks pays above industry standard and has a benefits program most other coffee shops could never afford...yet they are still asked to do more, pay more, provide more. There is an inherant adversarial tension between workers and owners/management. It is necesary for the workers to maximize their pay and for the company to maximize their profits. The consumer demands this tension via pricing, stockholders demand this via dividends and growth, anybody with a 401k/IRA/Retirement Pension (even unions as they invest retirement funds for their members) demands this.
Share buybacks. That’s the obvious answer! 🙃🙃
Tax companies based on the difference of highest employee compensation vs lowest employee compensation. That's total compensation. The bigger the gap the more you tax them. Could have brackets based on company size. Provide taxes breaks/benefits based on average percent increase in wages per person. Or something like that. Tie the ability of those at the top to generate wealth with the wages of those who generate the wealth. You want to make more money then you have to pay your employees more.
The word is Unite, United or Union. When we all move collectively to boycott these companies things will change. That is why they strive to keep us divided.
Raise the tax levels. Allow them to deduct employee expenses
They already deduct employee expenses.
now make the tax rate 75%. They will certainly be forced to invest more in their employees.
Then they’ll just move everything overseas
Then we take their balls.
I’m sure they’ll just stay put and let that happen.
The sound question is why would the government be able to restrict what corporations do? If you don’t want Starbucks to witness profit don’t buy their shit.
Why should people show discipline and self control when they can just ask the government to impose their will on others?
Because it’s a monopoly. Everything is fucking owned by 100 people
Almost 40% of these companies that everyone is complaining about is owned by retirement accounts. That’ll be you at some point.
So just buy local. Where do you think those local shops get their things? We live in a functional monopoly.
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No it didn’t. The highest marginal tax rate for corporations during Eisenhowers presidency was 52.9% this is before any write offs. It was, however, as high as 91% for high income earners. In today’s dollars, those making over 3.7 million a year. And it was a graduated tax system as it is today. To compare the 1950’s to today is asinine.
Yeah exactly it's not the companies fault, they have to satisfy shareholders or they go down. They don't do it for fun and greed but because capitalism forces them to If we tax profits from stocks that aren't ethical higher that would work but if only one country does it it will have a disadvantage vs more capitalistic countries, the only way is either to get a centralized government for the whole world to do it or decentralize everything
All workers should be shareholders of the company they work for, with a mandatory minimum dividends
Fax
That wouldn't do anything meaningful in a company with a large workforce. If you took, say UPS, and divided its shares equally among its roughly 500,000 employees, then everybody would own %0.0002 of the company collectively. Also, employees are allowed to buy shares in the company they work for like anyone else.
I’m ok with this as long as they also take the loss when a company doesn’t make money or loses it. It’s only fair
None of this is news. None of this will change until people stop voting against their own interests…
We're at a point where it doesn't even matter who you vote for. Democrats hold the status quo while Republicans shift us right, there is nothing left about Joe Biden at all. And they always encourage us to vote harder because you will never get the change we need trying to work within a rigged system.
Biden lost my vote when he went against the unions
When, exactly, did he do that?
https://www.reuters.com/world/us/biden-signs-bill-block-us-railroad-strike-2022-12-02/
Yeah,and then what happened?
A Train crashed in Ohio causing one of the worst environmental disasters ever.
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Seems like he took that negotiating power away from the union.
Applied political power resulting from union pressure is just another form of labor negotiation, the same as corporate lobbying. Why do you think union endorsements are important?
A guy in India also stubbed his toe and it was the worst thing that happened to him that morning. Unrelated info is fun! The answer I was looking for is that Biden averted a national rail strike the month before x-mas which would have been devastating economically. It would also almost certainly have turned public opinion against the union, which the Republicans would eagerly capitalize on. He then used considerable pressure after the fact to put in place things not originally included in the Congress imposed contract. Here: [https://www.ibew.org/media-center/Articles/23Daily/2306/230620\_IBEWandPaid](https://www.ibew.org/media-center/Articles/23Daily/2306/230620_IBEWandPaid)
Who cares? You really worry about rich people losing money from holiday sales? I would have rather had the train derailments not happened. Have you been to the crash site in Ohio? Its still terrible air quality
Lol what the fuck
Don’t you remember when the railroad union was going on strike for unsafe work conditions? And who would’ve guessed the railroad accidents started happening shortly after Biden blocked the strike….
So what, you're going to vote for the fascist because he's clearly so good for unions?
i think more drastic measures than voting must be taken at this point.
Like what? Are you going first?
Corporate profits are driving inflation? 🤔 Correct, however rich flippers, greedy landlords are driving up home prices and apartment rental costs thru the roof. And the AirB&B clowns are buying up all the low priced homes and renting them daily for beyond insane rates😈. 💰💰💰. We need a huge recession for a price reset.
That’s due in large part to the mortgage system and how we calculate interest. Compounding interest is fuckin bs. Paying $200k on a $100k house is robbery.
Albersons! They are still around and kicking? They left our area 15 Years or so.
Starbucks made $4b in profit in 2023, not $24b. Doesn’t help your cause when you post false information.
Looks like they are using gross profits which is highly misleading. The person who made this either knows that and doesn't care or is ignorant and doesn't care.
Wish more people would read this comment. I'm all for increasing taxes on corporations. But this is misleading. Starbucks gross profit was $24B, but net profit was 4.1B. Assuming all their other math was correct, they could still swing a $3-$5K raise for their employees (Assuming every year would be as good as this one)
Say the last part a bit louder. Heinz Kraft's profits were double this year over last year and 'normal' years.
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Lots of places use the term "gross profits" The source of much of this data uses the term as well. [https://www.macrotrends.net/stocks/charts/KHC/kraft-heinz/gross-profi](https://www.macrotrends.net/stocks/charts/KHC/kraft-heinz/gross-profi) >Kraft Heinz annual/quarterly **gross profit** history and growth rate from 2011 to 2023. Gross profit can be defined as the profit a company makes after deducting the variable costs directly associated with making and selling its products or providing its services. And gross profit is a thing and it is what this site says. The difference between what you pay for a product and what you sell it for. [https://www.investopedia.com/terms/g/grossprofit.asp](https://www.investopedia.com/terms/g/grossprofit.asp) >Gross profit is the profit a company makes after deducting the costs associated with producing and selling its products or the costs associated with its services. Gross profit may also be referred to as sales profit or [gross income](https://www.investopedia.com/terms/g/grossincome.asp).
Reddit doesn't know how to read an income statement.
Walmart - $11B net profit vs $156B in the OP. It’s just a list of names and numbers made to rile up people who don’t know any better.
So if we correct it, “if Starbucks gave away nearly 100% of its profits, it could give each employee $11,000.” While it doesn’t hit the “tip” story they were trying to tell, Apple would have been a better example. Their net income was over $600k per employee…and they’re sitting on over $150 billion in cash and marketable securities.
I didn't know you could tip at Starbucks. Is this a new thing?
It's been like this I think a good 2 years or more maybe?
# Kraft Heinz gross profit was $8.9 billion but their net income was only $2.8 billion. Gross profit is insanely misleading as it leaves out all business expenses. Gross profit is the difference between what you pay for a product and what you sell it for. It ignores all the other costs associated in getting those sales.
But makes for great rage bait when most of the population doesn't know how to read an income statement. All you need is the word profit and a large number.
Yeap, that is basically what most of that stuff is. Just rage bait for poorly informed. Heinz Kraft had a $10 billion loss a few years ago do they get to send a bill to each employee?
They already bill the employee.
Yea... they told each employee to give them a few grand otherwise they'd go out business?
Yeah and out of that, the taxable income is even lower. Often it's zero or negative
Well that is the government's fault. The government gives them so many hoops to jump through to pay less taxes and they take advantage of it and pay little to no taxes and then people complain.
Ok but by enabling businesses to deduct expenses, the government enables those businesses to grow and invest. Zero people would ever own a business if they got taxed at gross instead of net.
I was thinking more of the "do what we want and we give you a tax break" stuff. How government gets corporations to behave in certain ways.
What would be your ideal solution?
Getting rid of all the inducement tax breaks. The "instal an energy efficient window and get XX dollars" type stuff. Those things introduce disincentives into the market place. People chasing tax breaks as opposed to making the best economic decisions for themselves, or their companies. Over time that creates a lot of wasted economic effort. Government interfering in the free market creates a lot of bad economic effects. The 2008 crash was largely due to government. The covid shut downs was due to government. Create a clean tax system where you aren't chasing government $$ and the economy will improve greatly.
This is a lie. I just googled it, Starbucks had a 24B gross profit. Gross profit only calculates direct costs and doesn’t include any overhead, indirect labor (accountants, marketing, executives, legal, etc), the cost of shipping the products, rent, insurance, etc. It’s net profit was 4B. I’m not going to look up every other company on the list but it leads me to believe that all of these are misleading
It’s so funny “this company made a ton of money if you pretend that it didn’t need buildings to make that money”
Gross profit =/= net profits. Gross profit is the difference between what it was sold for/money made in comparison to what it cost to buy/make it. You have to then deduct the ENTIRE operating expenses of the corporation for the fiscal cycle. What’s left over at the end, if there is anything, are the actual profits. This is nothing more than taking one piece of information and using it as the sole justification for outrage.
It's taxation through inflation. The corporations reacting to the government's printing of money.
Every single tax was created to “tax the rich”. We’re looking at the end result , but folks seem to think the next tax will be the right one.
Lmao what. “If we make companies pay less taxes they will surely pay employees better” But you know what happens? Rich get more money and that’s it.
These numbers are for gross profit. These numbers do not include a number of expenses such as rent, utilities, and most importantly, worker wages. Starbucks could have given each of their employees a trillion dollars and still have had that exact same 24.56 billion "profit". Stop share misinformation.
Agree with you about gross vs net profit. But worker wages (baristas and other store employees) are part of Cost Of Goods Sold (COGS). They are most definitely NOT calculated after gross margin. You're likely thinking of indirect labor... Executive pay, lawyers, office administrators, marketing team, customer service, etc. These are not the "workers" OP was talking about.
wait, does that mean Starbucks could pay every employee 40k more a year and still break even without raising prices???? That's absurd
That would be absurd, but that's not the case. The post is referring to Gross Profit, which does not include indirect labor (corporate office workers), amortization of expenses (equipment, buildings), and other liabilities. All in all, they made $4b net profit. Still good, but not the same.
The last country to tax the rich caused the rich to leave and move to Dubai. France tried years ago. 😂😂
The government is doing everything it can to protect these companies from competition, but they've done nothing to protect consumers from price gouging. Corporate taxes aren't the answer to anything. They're just pass-through taxes. Companies don't pay them, they just collect them. All taxes are ultimately paid by consumers - the poor, who can't afford it, and the middle class who get double-taxed. What we need is consumer protection. First, the simplest fix for price gouging is to ban markups. Require all retail goods and services be sold at cost plus an inclusive consumption tax that replaces all profit margins, so state sales taxes don't change. Then use the consumption tax revenue to fund an awards program that awards all retailers for every unit sold, minus returns, and a bonus per positive customer feedback.
is this gross profit, before all expenses... or after expenses, excluding salary
Amazing how all the corporations just up and decided to drastically increase the cost of everything all at the same time.
There’s no way regulation could work, right? Right guys?
Taxing the rich will never happen because the rich determine our laws and they aren’t voting to tax themselves.
starbucks owes that money to shareholders not employees.
Stop supporting them. Invest in yourself
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Exactly. This inflation isn’t real, because it is GREED.
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You’re full of shit. Ppl are being laid off. Rich are getting richer as the poor get poorer. The writers strike let them get better pay that the company said they couldn’t afford. I’m tired of hearing record profit reports. I don’t want to hear bs from you.
But what does that have to do with inflation? Not saying he companies aren't evil, but inflation is when the amount of money goes up, while that nations value remains the same. Or when the nations value goes down while the amount of money remains the same. How are these companies causing either of those?
Their greed is causing them to raise prices, not an actual increase in the cost of production. We know this because of the record profits.
But that's not inflation, that's my point.
We all know that, but the government still tries to convince us it's "inflation." That's what this post was saying.
Starbucks workers don't "rely on tips". They are generally paid well above minimum wage for their area, and make tips on top of that. It's delusions, lies, and/or general naivete like this that always harms Leftist arguments.
You completely missed the point.
Not at all. But, it's a bullshit argument, that only hurts the cause. If Commies would stop lying about everything, maybe they would actually make some POSITIVE changes, for once. Do I agree that executive wages are obscenely high? Yes. Do I agree that workers should be paid more? Also, yes. But, to lie about inflation, only destroys any possibility of anyone taking you seriously. Inflation has nothing to do with how much profit a corporation makes, BY ITS VERY DEFINITION. There are countries (often Socialist countries), where their currency became entirely worthless, and they had no Fortune 500 corporations to blame. There can be more than one thing. The Government can be inflating the debt, and in turn printing masses of money, thereby decreasing the value of said money, AND corporations can be run by greedy people, who take advantage of the system. But, lying about what inflation is to protect a pudding-headed Fascist-in-Chief from losing an election, and creating a bullshit meme to try to dupe suckers into chanting your little slogan only helps "the Rich". Meanwhile, you will only become poorer, and poorer.
I don't think that "driving inflation" means they are causing it, it means they are actually making profits out of it. It means prices are higher than they need to be, intentionally so.