Found 4 article(s) for author 'Corporate Taxes'

Company Stock Price Reactions to the 2016 Election Shock: Trump, Taxes, and Trade

Company Stock Price Reactions to the 2016 Election Shock: Trump, Taxes, and Trade. Richard Zeckhauser, August 17, 2017, Paper, “Donald Trump’s surprise election shifted expectations: corporate taxes would be lower and trade policies more restrictive. Relative stock prices responded appropriately. High-tax firms and those with large deferred tax liabilities (DTLs) gained; those with significant deferred tax assets from net operating loss carryforwards (NOL DTAs) lost. Domestically focused companies fared better than internationally oriented firms. A price contribution analysis shows that easily assessed consequences (DTLs, NOL DTAs, tax rates) were priced faster than more complex issues (net DTLs, foreign exposure). In sum, the analysis demonstrates that expectations about tax rates greatly impact firm values.Link

Tags: , , , , , , , , , , , , , , ,

Trump Hopes To Lure Companies Back To The U.S. With Lower Tax Rates

Trump Hopes To Lure Companies Back To The U.S. With Lower Tax Rates. C. Fritz Foley, May 29, 2017, Audio, “A key part of President Trump’s tax plan is to repatriate corporate profits held overseas back to the U.S. With the lure of lower corporate rates, the idea is that companies will free up overseas earnings and instead invest in jobs and equipment in the U.S. A similar scheme was tried during the administration of George W. Bush, but companies used most of the money on stock buybacks or to pay dividends to shareholders.Link

Tags: , , , ,

How to Fix the Corporate Tax? Repeal It

How to Fix the Corporate Tax? Repeal It. N. Gregory Mankiw, August 24, 2014, Opinion. “‘Some people are calling these companies ‘corporate deserters.’ That is what President Obama said last month about the recent wave of tax inversions sweeping across corporate America, and he did not disagree with the description. But are our nation’s business leaders really so unpatriotic? A tax inversion occurs when an American company merges with a foreign one and, in the process, reincorporates abroad...” Link

Tags: , , , ,