2017-12-07 08:31:00 Thu ET
treasury deficit debt employment inflation interest rate macrofinance fiscal stimulus economic growth fiscal budget public finance treasury bond treasury yield sovereign debt sovereign wealth fund tax cuts government expenditures
Large multinational tech firms such as Facebook, Apple, Microsoft, Google, and Amazon can benefit much from the G.O.P. tax reform. A recent stock research report assumes the effective U.S. corporate income tax rate declines from 35% to 21%-22% in January 2018 with no subsequent changes in international taxes and all other aspects of the U.S. tax legislation. Specifically, Google will receive tax benefits of more than $2 billion in 2018, Facebook expects to attain tax cost reductions of $1.5 billion, and Amazon will enjoy about $1 billion in tax credits. Also, these tech firms plan to expand their capital expenditures with preferential tax provisions in the Trump administration's current tax reform. Overall, these tech firms can expect to achieve hefty tax benefits in the range of $4.5 billion to $5 billion in the 5-year period from 2018 to 2022.
Harvard macrofinance professor Greg Mankiw entertains a key policy question: how much would the average real wage rise for each $1 decrease in the typical firm tax outlay ceteris paribus? The answer is likely to be $1.5 to $2 in real wage terms for each $1 tax cut, or equivalently $4,000 to $ 9,000 per capita per year. Several eminent economists such as Brad DeLong, Larry Summers, and John Cochrane suggest that if we take into account positive externalities and positive returns to the scale of capital usage, the resultant real wage increase can turn out to be higher. An open controversy clouds the fundamental view of whether these massive tax cuts may exacerbate fiscal inequality in America.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2019-07-17 12:37:00 Wednesday ET
Gold prices surge above $1400 per ounce amid global trade tension and economic policy uncertainty. Both European Central Bank and Bank of Japan may consider
2017-10-15 07:38:00 Sunday ET
Ivanka Trump and Treasury Secretary Steven Mnuchin both press the case for GOP tax legislation as economic relief for the middle-class without substantial t
2022-08-30 10:32:00 Tuesday ET
The financial services industry needs fewer banks worldwide. As long as banks have existed in human history, their managers have realized how not all dep
2017-09-19 05:34:00 Tuesday ET
Facebook, Twitter, and Google executives head before the Senate Judiciary Committee to explain the scope of Russian interference in the U.S. presidential el
2025-06-05 00:00:00 Thursday ET
Former New York Times team journalist and Pulitzer Prize winner Charles Duhigg describes, discusses, and delves into how we can change our respective lives
2018-06-17 10:35:00 Sunday ET
In the past decades, capital market liberalization and globalization have combined to connect global financial markets to allow an ocean of money to flow th