Tastyfrzz · 61-69, M
The tax rate on the corporate earnings would remain constant. Since more of the earnings is going to the owners they would have to pay the difference. Now, if there is no allowance for the cost and maintenance of the automation, they may soon discover that the investment is too high and there is no financial advantage. The company owner may actually reduce their personal income. Automation is not always a good thing. You have to use caution when adding automation. At Seagate we used a lot of it but we were pumping out a hard drive every 3.5 seconds. The servo track writers alone are worth over two billion dollars but have have been used so long they no longer have any amortization value. Keeping them going is a challenge though as most of the components are no longer made, the expertise has left the company, the computers and software are outdated, and the 200 miles of pneumatic lines need replacing. It was never dreamed that the technology would not be superceded by something better but they still use the same machines we created over twenty years ago.
jehova · 36-40, M
Death to all humans!


