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mariosblack

Trumps corporate tax cut benefits who again? Barf

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Posted (edited)

One of the big beneficiaries so far from the corporate tax rate cut has been shareholders.

J. P. Morgan recently predicted that share repurchases would total about $800 billion this year, a new record.

The share repurchases have helped keep the market afloat, as investors have pulled $23.5 billion out of funds that focus on U.S. stocks this year, according to Bank of America Merrill Lynch.

"The feverish buyback activity suggests companies plan to use a hefty chunk of the money they expect to save on taxes to buy back stock," David Santschi, director of liquidity research at TrimTabs, said in his weekly report.

"Share repurchases are arguably the most conservative things companies can do with their money other than pay down debt," he added. "But Why pay down debt when central banks allow you to borrow for almost nothing on an after-tax basis?"

Both the number and volume of buybacks have stayed elevated even though earnings season has ended, suggesting companies will be using a substantial share of their corporate tax savings to repurchase shares," Santschi said.

MORE AT:

https://www.cnbc.com/2018/03/12/companies-are-putting-tax-savings-in-the-pockets-of-shareholders.html

Edited by mariosblack

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From the Department of Redundancy Department:

Just to set the record straight, as a retired small business owner.  My business was a corporation.  I was the Pres, my wife the VP and Secretary.  The reason my "cottage business" was "incorporated" was to PROTECT my private assets in case there was a lawsuit filed.

Incorporating a business separates the owners from the actual entity.  Many small "mom & pop" businesses are thriving due to the drop in the "corporate" rate.  That does not make them billionaires.  If they gross $800k a year, they might take home a median wage after payroll and operating expenses.

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Posted (edited)
7 hours ago, oldcynic said:

From the Department of Redundancy Department:

Just to set the record straight, as a retired small business owner.  My business was a corporation.  I was the Pres, my wife the VP and Secretary.  The reason my "cottage business" was "incorporated" was to PROTECT my private assets in case there was a lawsuit filed.

Incorporating a business separates the owners from the actual entity.  Many small "mom & pop" businesses are thriving due to the drop in the "corporate" rate.  That does not make them billionaires.  If they gross $800k a year, they might take home a median wage after payroll and operating expenses.

bro how many times you gonna say that? If you see pitchforks in the future dont worry....

Oh wait never mind this is Murica we never actually put the blame where it truly lays. sorry dude

Edited by mariosblack

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14 minutes ago, oldcynic said:

Capitalism at its best, my friend.  I was born a capitalist.

Crony capitalism is an economy in which businesses thrive not as a result of risks they take, but rather as a return on money amassed through a nexus between a business class and the political class.

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Very true.  Just about everything mankind introduces as an ideal socio-political structure can and will be prostituted and corrupted, and that's a GD shame!

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