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Did all these companies invest in the US after the 2017 Tax Reform or are they still overseas, I read where investment in foreign companies actually increased after the corporate tax cuts. A separate issue but the money that was repatriated mostly went to stock buy backs same as under the Bush administration.
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Where did the money go?
The authors estimate the one strong effect of the TCJA was its deep cut in effective corporate tax rates, from 17.2 percent in 2017 to 8.8 percent in 2018.
And, they found, multinational corporations repatriated $664 billion in foreign earnings in 2018—more than the previous three years combined—after the TCJA cut taxes on repatriated overseas earnings.
If effective corporate rates were cut in half, and firms had new access to $664 billion in overseas income, yet they didn’t spend that extra cash on wages or investment, where did it go?
CRS confirms what was well-reported at the time: Much of it went to $1 trillion in stock buybacks.
That was good news for many shareholders. But it also was evidence that companies didn’t see a way to earn significantly higher returns by investing the money in capital or labor. And that may explain, more than anything, why the TCJA’s effects on the 2018 economy are so hard to find.
Did all these companies invest in the US after the 2017 Tax Reform or are they still overseas, I read where investment in foreign companies actually increased after the corporate tax cuts. A separate issue but the money that was repatriated mostly went to stock buy backs same as under the Bush administration.
The 2017 Tax cut bill allowed corporations to buy back stock and juice the stock market. If a corporation is buying back its own stock, raising the stock's value, that makes shareholders happy. In turn the shareholders reward the CEO with ever increasing salaries. It's a feedback loop and it does not reflect the true state of the economy. The stock market has existed in an alternate universe for a few years now.
And don't forget that they then went looking for bailouts when things got tough rather than just re-issue the stock they had bought back as they should have done.
Did all these companies invest in the US after the 2017 Tax Reform or are they still overseas, I read where investment in foreign companies actually increased after the corporate tax cuts. A separate issue but the money that was repatriated mostly went to stock buy backs same as under the Bush administration.
And don't forget that they then went looking for bailouts when things got tough rather than just re-issue the stock they had bought back as they should have done.
Why doesn’t the government you elected tell the companies to get lost?
The 2017 Tax cut bill allowed corporations to buy back stock and juice the stock market. If a corporation is buying back its own stock, raising the stock's value, that makes shareholders happy. In turn the shareholders reward the CEO with ever increasing salaries. It's a feedback loop and it does not reflect the true state of the economy. The stock market has existed in an alternate universe for a few years now.
I don’t recall anybody being appointed the dictator for the United States. “Allowed”? People need to be allowed to spend their own money in their own way? What’s the matter with you?
Did all these companies invest in the US after the 2017 Tax Reform or are they still overseas, I read where investment in foreign companies actually increased after the corporate tax cuts. A separate issue but the money that was repatriated mostly went to stock buy backs same as under the Bush administration.
Who benefits from stock buy backs? Share holders. And who are they? About 100 million US workers and retirees who have, in aggregate, $29.1 trillion worth of investments in their pensions and/or retirement accounts. They benefit from stock buy backs.
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