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.
Academic Deep Learning | Dr. Karen Walker
Transcript, Academic Deep Learning | Dr. Karen Walker Alan Welcome back. I’m here today with Dr. Karen Murray Walker. She’s the author of the book, The Deep Learning academic success planner. And we’re on the campus of Southern Virginia University. Dr. Walker, welcome to the show. Thank you. So I’d like your background, you know…
Jenny Oaks Baker- Developing Talents
About Jenny Oaks Baker America’s Violinist, Jenny Oaks Baker is a Grammy Nominated, Billboard No. 1 performer and recording artist. She received her Master of Music degree from the renowned Juilliard School in New York City and her Bachelor’s Degree in violin performance from the Curtis Institute of Music in Philadelphia. She has performed as…
How the Internet Became Commercial: Patterns in the Deployment of Technology | Shane Greenstein
About Shane Greenstein Shane Greenstein is a Professor of Business Administration at the Harvard School of Business and is the MBA Class of 1957 Professor of Business Administration. Professor Greenstein is also co-director of the program on the economics of digitization at The National Bureau of Economic Research. Professor Greenstein is the author of…
Approaching Star Trek Like Medical Technology | Joseph Deluca
Approaching Star Trek Like Medical Technology | Joseph Deluca This is just a short excerpt from the original interview, found “Here“. It contains over 23-minutes of interview along with a full transcript. We hope you enjoyed this excerpt form the interview of Joseph Deluca “Approaching Star Tek Like Medical Technology”. To receive our free newsletter,…