Winner and (Lesser) Winners

By |2018-01-16T12:07:41+00:00January 16th, 2018|Categories: Global Market Update|Tags: , , , |

What is the corporate impact of tax reform? Public Domain. Source: Wikimedia The new tax law is on the books, and most people will be looking at their paychecks to see how the new rates will affect them personally. But the biggest impact of the law will be on corporate taxes. After all, going into 2017 there was a broad consensus that our highest-in-the-world corporate tax rates needed to be reformed, with a lower statutory rate and [...]

Winners and Losers

By |2017-12-05T10:50:46+00:00December 4th, 2017|Categories: Global Market Update|Tags: , , |

Who wins and loses from tax reform? Photo: Derek Lilly. Source: Morguefile Most of the comments on tax reform center on what happens to individuals – the personal exemption, the mortgage interest or medical expense deduction, and so on. That’s understandable: people want to know how different versions will directly affect them. And the bill’s depends on each taxpayer’s personal situation But the point of the pending legislation is corporate tax reform – to find ways to [...]

World Wide Cash

By |2016-11-17T15:41:15+00:00September 21st, 2016|Categories: Global Market Update|Tags: , , |

Why do firms hold so much cash overseas? Source: Capital Economics As the global economy has grown, cash held overseas by US firms has grown at a rapid pace. US companies now hold over $2.5 trillion. The recent flap over Apple’s $14.5 billion fine by the European Commission brings into high relief the fact that the US has the highest corporate tax rates in the world, and claims a share of anything a US company does—if it [...]

Super Failure?

By |2016-11-17T17:23:38+00:00November 28th, 2011|Categories: Global Market Update|Tags: , , |

Was the deficit Supercommittee’s failure a fiscal disaster? On the face of it, no. Their failure to come up with $1.2 trillion in deficit reduction over two years will simply trigger an automatic sequester process that will begin in 2013. There’s no risk from this of a government shutdown or a debt default. All three ratings agencies affirmed the US’s […]