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.
2018-03-01 07:35:00 Thursday ET
Trump imposes high tariffs on steel (25%) and aluminum (10%) in a new trade war with subsequent exemptions for Canada and Mexico. The Trump administration
2020-08-19 10:32:00 Wednesday ET
Corporate strategies, portfolio choices, and management memes add value and drive business process improvements over time. Andrew Campbell, Jo Whitehead,
2018-08-31 08:42:00 Friday ET
We share several famous inspirational stock market quotes by Warren Buffett, Peter Lynch, Benjamin Graham, Ben Franklin, Philip Fisher, and Michael Jensen.
2019-09-03 14:29:00 Tuesday ET
Due to U.S. tariffs and other cloudy causes of economic policy uncertainty, Apple, Nintendo, and Samsung start to consider making tech products in Vietnam i
2017-10-27 06:35:00 Friday ET
Leon Cooperman, Chairman and CEO of Omega Advisors, points out that the current Trump stock market rally now approaches normalization. The U.S. stock market
2019-11-19 09:33:00 Tuesday ET
American unemployment declines to the 50-year historical low level of 3.5% with moderate job growth. Despite a sharp slowdown in U.S. services and utilities