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.
2018-11-17 09:33:00 Saturday ET

Zillow share price plunges 20% year-to-date as its competitors Redfin and Trulia also experience an economic slowdown in the real estate market. The real es
2019-06-05 10:34:00 Wednesday ET

Fed Chair Jay Powell suggests that the recent surge in U.S. business debt poses moderate risks to the economy. Many corporate treasuries now carry about 40%
2022-11-30 09:26:00 Wednesday ET

Climate change and ESG woke capitalism In recent times, the Biden administration has signed into law a $375 billion program to better balance the economi
2017-12-14 12:41:00 Thursday ET

Federal Reserve raises the interest rate by 25 basis points to the target range of 1.25% to 1.5% as FOMC members revise up their GDP estimate from 2% to 2.5
2017-05-31 06:36:00 Wednesday ET

The Federal Reserve rubber-stamps the positive conclusion that all of the 34 major banks pass their annual CCAR macro stress tests for the first time since
2025-02-02 11:28:00 Sunday ET

Our proprietary alpha investment model outperforms most stock market indexes from 2017 to 2025. Our proprietary alpha investment model outperforms the ma