“U.S. stocks traded sharply higher on Monday as investor sentiment was boosted the Senate narrowly passing a major tax bill over the weekend,” Fred Imbert and Alexandra Gibbs report for CNBC. “The Dow Jones industrial average rose 203 points, with Boeing and Walt Disney leading advancers on the 30-stock index. The Dow also hit a record high and briefly traded more than 300 points higher. The S&P 500 gained 0.5 percent, with financials and telecommunications as the best-performing sectors, rallying 2.1 percent and 1.8 percent, respectively. The index also reached an all-time high.”
“The Nasdaq composite lagged, trading 0.1 percent lower as Facebook, Alphabet and Netflix all traded lower,” Imbert and Gibbs report. “‘You’re seeing tech lagging and financials leading. This is some rotation on the back of the Senate vote,’ said Lindsey Bell, investment strategist at CFRA.”
In the early hours of Saturday morning, Senate Republicans managed to narrowly pass a bill to revamp the country’s tax system. The final vote came out as 51-49 in favor,” Imbert and Gibbs report. “The GOP, however, still need to overcome future obstacles in order for the Senate and the House to craft a joint bill, which will then be presented to President Donald Trump. Republicans hope a deal will be achieved by Christmas.”
With the great vote on Cutting Taxes, this could be a big day for the Stock Market – and YOU!
— Donald J. Trump (@realDonaldTrump) December 4, 2017
“‘Investors this week will look to see progress between the House and Senate’s joint bill,’ said Nicholas Colas, co-founder of DataTrek Research. ‘Both chambers still have to reconcile differences between their bills, such as implementing corporate tax cuts immediately or in 2019,'” Imbert and Gibbs report. “U.S. stock index futures had also risen sharply before the open on Monday. Dow futures briefly traded more than 250 points higher.”
Read more in the full article here.
MacDailyNews Take: Of course, we’ll have to wait for the whole thing to shake out and see the actual rates and details. It would certainly be an excellent development, and long overdue, if the U.S. can modernize U.S. corporate and personal taxation and come up with a workable solution that benefits the country, U.S. companies and their many millions of employees.
As we’ve been saying for many years now, the U.S. corporate tax rate is obviously way too high and exceedingly anachronistic.
Under the current U.S. corporate tax system, it would be very expensive to repatriate that cash. Unfortunately, the tax code has not kept up with the digital age. The tax system handicaps American corporations in relation to our foreign competitors who don’t have such constraints on the free flow of capital… Apple has always believed in the simple, not the complex. You can see it in our products and the way we conduct ourselves. It is in this spirit that we recommend a dramatic simplification of the corporate tax code. This reform should be revenue neutral, eliminate all corporate tax expenditures, lower corporate income tax rates and implement a reasonable tax on foreign earnings that allows the free flow of capital back to the U.S. We make this recommendation with our eyes wide open, realizing this would likely increase Apple’s U.S. taxes. But we strongly believe such comprehensive reform would be fair to all taxpayers, would keep America globally competitive and would promote U.S. economic growth. – Apple CEO Tim Cook, May 21, 2013
SEE ALSO:
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President Trump’s tax plan aims new foreign tax at Apple, other multinationals – October 3, 2017
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Apple will eventually bring billions of dollars back to the U.S. under President Trump’s tax reform plan – July 21, 2017
President Trump’s tax reform plan includes deep cuts in corporate taxes – April 26, 2017
Apple could be primed for profit explosion under President Trump’s big tax cut – April 26, 2017
Analyst: Apple could double dividend, buy Netflix with repatriated cash under President Trump’s U.S. corporate tax changes – March 17, 2017
Apple raises $10 billion in debt ahead of President Trump’s repatriation tax plans – February 3, 2017
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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