With public companies on track to shower a record $1 trillion on investors through dividend increases and share buybacks, Sen. Marco Rubio's recent suggestion that workers weren't getting much benefit from corporate tax cuts may sound truer than ever. "There is still a lot of thinking on the right that if big corporations are happy, they're going to take the money they're saving and reinvest it in American workers," the Florida Republican told the Economist last week. "In fact they bought back shares, a few gave out bonuses; there's no evidence whatsoever that they money's been massively poured back into the American worker." While a White House tally in February had at least 275 companies increasing worker compensation, and Americans for Tax Reform, a conservative group, pegs at 4 million the number of workers that have gotten bonuses or increased pay, Wall Street analysts who track corporate cash flows tell a different story. The GOP tax law drastically cut … [Read more...] about Guess where the corporate tax cut money is flowing
Corporate tax cut
Share This Story! Let friends in your social network know what you are reading about Facebook Email Twitter Google+ LinkedIn Pinterest Arizona corporate tax cuts imperil credits that fund private-school scholarships The dwindling impact of the tax credits is prompting school-choice advocates to weigh their options to find other tax credits or funding sources. Sent! A link has been sent to your friend's email address. Posted! A link has been posted to your Facebook feed. Join the Conversation To find out more about Facebook commenting please read the Conversation Guidelines and FAQs Subscribe Today Log In Subscribed, but don't have a login? Register your digital access. Rob O'Dell and Yvonne Wingett Sanchez, The Republic | azcentral.com Published 5:30 a.m. MT April 6, 2018 CONNECT TWEET LINKEDIN COMMENT EMAIL MORE The Arizona Legislature has cut taxes to the point that corporations no longer owe … [Read more...] about Arizona corporate tax cuts imperil credits that fund private-school scholarships
The White House is proposing to cut corporate income taxes from 35 percent to 28 percent. President Obama also recommends that manufacturers get a further cut, to 25 percent, and he wants to impose a minimum rate on foreign earnings to discourage the use of tax shelters. There would other less substantive changes as well under his plan.The cut in the statutory tax rate, however, may not have as large an effect on the corporate sector as many anticipate. The reason is that this is intended as a revenue neutral change in taxes. To accomplish revenue neutrality, the cut in the tax rate will be accompanied be closing loopholes, i.e. a broadening of the base. Thus, every company receiving a tax break will be matched somewhere else by companies experiencing a tax increase. Thus, while some firms will benefit, others will get hit harder by these taxes and the net effect overall should be roughly a wash. Obama to propose corporate tax cutTug of war over inflation at the Federal ReserveAnother … [Read more...] about Corporate tax cut: Good idea, but won’t stimulate economy
Last Updated Nov 9, 2017 4:51 PM EST U.S. stocks saw sizable losses Thursday, with technology and industrial companies and banks slumping after Republicans in Congress said they might delay their proposed corporate tax cut to 2019. Investors soon began selling some of the stocks that have done the best this year. "Markets are having a hard time digesting why cutting taxes is such an impossible task for Republicans," said Jamie Cox, managing partner for Harris Financial Group. "Markets are telling Republicans to get them done and stop wasting time."Keeping scoreThe Standard & Poor's 500 index fell 9 points, or 0.4 percent, to 2,584. The Dow Jones industrial average declined 101 points, or 0.4 percent, to 23,461. The Nasdaq composite index fell 39 points, or 0.6 percent, to 6,750. Each closed at an all-time high on Wednesday. The Russell 2000 index of smaller-company stocks fell 10 points, or 0.7 percent, to 1,471, its lowest level since late September.While investors sold some … [Read more...] about Stocks fall amid signs of delays in corporate tax cuts
Taxes may be inevitable, but how businesses and workers react to the tax code isn't always predictable. Take President Donald Trump's pledge this week to cut corporate taxes to 15 percent from their current 35 percent. In a speech in Missouri on Wednesday, Mr. Trump said a lower business tax rate would not only create jobs, but raise wages and help the average worker. "We must reduce the tax rate on American businesses so they keep jobs in America, create jobs in America and compete for workers right here in America," he said. "Because when businesses compete for labor, your wages will go up." While Mr. Trump's speech was billed as laying the groundwork for tax reform later this year, his proposal was short on details, which experts say makes it difficult to gauge how his plan might work. Yet on the face of it, a drastic cut to corporate taxes may not provide the type of benefit to the middle-class worker that Mr. Trump suggests. "It's the old trickle-down economics: If we … [Read more...] about Can Trump’s corporate tax cuts help the middle class?