“Today, stocks were up nicely, the dollar was stronger, and yields ticked up — all reflective of some of the chatter on the wires out of Washington,” Bryan Rich writes for Forbes. “The pushed back timeline on tax reform has been one of the heavier weights on markets since health care reform negotiations fell apart last month. Prior to that, Treasury Secretary Mnuchin and Speaker Paul Ryan had both said health care reform had to come before tax reform.”
“Now Mnuchin is saying tax reform will happen whether health care is done or not. But he’s also managed expectations on something coming by August–now he says before the end of the year, and he says it will be significant,” Rich writes. “Trump, and the economy, need a win to keep momentum going in the right direction. They could get a win by fast tracking plans to give a tax break to trillions of dollars of corporate money that is parked overseas.”
“Even at a flat 10% tax on money coming back in, that’s money they are already earmarking to help pay for an infrastructure spend,” Rich writes. “Getting that in motion would drive employment, wages, investment and growth–all things that can be bolstered further by tax reform and health care reform later.”
Read more in the full article here.
MacDailyNews Take: As we wrote last year, prior to the election:
Let’s not do another “one-time-only” (smirk) repatriation holiday. Let’s fix the broken U.S. corporate tax code instead. Let us eschew the easy way out, that fixes nothing in the long run, and choose to do the hard work instead.
SEE ALSO:
What President Trump could do to lift Apple shares to $175 – March 17, 2017
Apple raises $10 billion in debt ahead of President Trump’s repatriation tax plans – February 3, 2017
After Apple’s blowout earnings, the Street looks toward ‘iPhone X’ and President Trump’s tax reforms – February 3, 2017
President-elect Trump’s corporate tax reform expected to have some positive impact on Apple EPS – January 14, 2017
Exploring Apple’s tax situation under U.S. President Donald Trump – November 21, 2016
Morgan Stanley: Apple stands to benefit the most from President Trump’s corporate tax plans – November 11, 2016
Apple and U.S. President-elect Trump: Can a tax cut for overseas cash heal wounds? – November 10, 2016
Donald Trump plan calls for cuts in corporate taxes, personal income tax rates – August 9, 2016
Barring a tax holiday, Apple will need to raise over $50 billion in debt the next 2 years – July 15, 2016
Cramer: Apple’s Tim Cook is ‘patriotic’ on taxes – December 21, 2015
Apple CEO Tim Cook is absolutely right – and wrong – on U.S. corporate tax policy – December 20, 2015
Apple CEO calls corporate tax rap ‘total political crap’ – December 18, 2015
Apple avoids $59.2 billion U.S. tax bill – October 7, 2015
U.S. companies now have $2.1 trillion overseas to avoid corporate taxes – March 4, 2015
