Tech titans from Apple and Amazon to Microsoft and Google can benefit from the G.O.P. tax reform.

James Campbell

2017-12-07 08:31:00 Thu ET

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.

Blog+More

American CEOs of about 200 corporations issue a joint statement in support of stakeholder value maximization.

Becky Berkman

2019-10-23 15:39:00 Wednesday ET

American CEOs of about 200 corporations issue a joint statement in support of stakeholder value maximization.

American CEOs of about 200 corporations issue a joint statement in support of stakeholder value maximization. The Business Roundtable offers this statement

+See More

AYA Analytica podcast provides fresh insights into the latest stock market news, economic trends, and investment portfolio strategies.

Andy Yeh Alpha

2018-11-30 12:42:00 Friday ET

AYA Analytica podcast provides fresh insights into the latest stock market news, economic trends, and investment portfolio strategies.

Andy Yeh Alpha (AYA) AYA Analytica financial health memo (FHM) podcast channel on YouTube November 2018 AYA Analytica is our online regular podcast and news

+See More

Global debt surges to $250 trillion in the fiscal year 2019.

Olivia London

2019-12-28 09:36:00 Saturday ET

Global debt surges to $250 trillion in the fiscal year 2019.

Global debt surges to $250 trillion in the fiscal year 2019. The International Institute of Finance analytic report shows that both China and the U.S. accou

+See More

Trump garners support from Senate and House of Representatives to pass the $1.5 trillion tax overhaul.

Daisy Harvey

2017-11-17 09:42:00 Friday ET

Trump garners support from Senate and House of Representatives to pass the $1.5 trillion tax overhaul.

The Trump administration garners congressional support from both Senate and the House of Representatives to pass the $1.5 trillion tax overhaul (Tax Cuts &a

+See More

AYA fintech finbuzz illustrative video tutorials on YouTube

Amy Hamilton

2019-05-05 10:46:10 Sunday ET

AYA fintech finbuzz illustrative video tutorials on YouTube

This video collection shows the major features of our AYA fintech network platform for stock market investors: (1) AYA stock market content curation;&nbs

+See More

President Trump tweets that Apple can avoid tariff consequences by shifting its primary supply chain from China to America.

Olivia London

2018-09-11 18:36:00 Tuesday ET

President Trump tweets that Apple can avoid tariff consequences by shifting its primary supply chain from China to America.

President Trump tweets that Apple can avoid tariff consequences by shifting its primary supply chain from China to America. These Trump tariffs on another $

+See More