Making the Most of Corporate Tax Reform
Although nothing major has happened yet, rest assured that corporate tax reform is on the way. The Trump administration has made big promises and at some point they are coming. So far, the president has proposed reducing the corporate tax rate from 35 percent to 15 percent, while republican leaders in Congress have proposed a slightly more modest reduction to 20 percent.
Either way, the cut would represent a significant reduction form the current rate of 35 percent and corporations would see a huge boost. For example, if the effective tax rate dropped to 8.4 percent, then S&P companies would see the amount of pretax income they keep jump to about 85 percent from the current amount of about 76 percent.
The president has also proposed a repatriation rate of only 10 percent. In other words all the corporate income that companies are currently holding overseas in order to avoid the 35 percent U.S. corporate tax rate would only be charged a 10 percent rate if it were brought home to the U.S. There could also be a removal of the interest-deductibility, which could actually hurt earnings, but the tax breaks would far outweigh the losses.
Therefore, if you add it all up you get a lower corporate tax rate that would boost earnings by about 11 percent combined with a repatriation rate that would boost earnings another 2 percent. Removing the interest-deductibility would lower earnings by 2 percent, therefore leaving a net boost of 11 percent to S&P 500 earnings.
Positive Work Environment
Positive Work Environment Written by Traci Bullock. Creating a positive work environment is essential for the success of any organization or company. A positive work environment not only increases productivity and employee satisfaction, it also attracts and retains top talent. In this article, we will discuss key elements of creating a positive work place: making…
Unlocking Success with Lynn Thomas CEO of Thomas Consulting One Great Idea at a Time
See Lynn Thomas‘ Recent Interview with Alan Olsen: about unlocking success one idea at a time, video here: https://youtu.be/0VFOWFl3wqk Lynn Thomas has been helping clients unlock success, one idea at a time by executing tailored client presentations that deliver extraordinary client experiences. Her firm specializes in creating and implementing plans based on new tax laws…
Pushing the Boundaries of Science and Technology since 1973: Terrific Insight from Dr. Lee Hood
See Dr. Lee Hood‘s recent interview with Alan Olsen: about pushing the boundaries of science and technology: https://youtu.be/60DDZ0MJ8QE Dr. Lee M. Hood is best known for his development of technologies which have enabled the advancement of predictive, preventative medicine. Dr Hood’s journey began at a young age, when he was an assistant professor of molecular immunology…
Ali Nasser: Building A Successful E-commerce Business From The Ground Up
See Ali Nasser’s interview with Alan Olsen: about Building A Successful E-commerce Business From The Ground Up on YouTube: https://www.youtube.com/watch?v=MJyKKqTCaBM Ali Nasser is a serial entrepreneur who has been helping business owners for nearly twenty years. He understands the legacy dilemma and financial freedom that many business owners face when it comes to their life…