Posted on 01/28/2019 1:29:13 PM PST by C19fan
The Trump administration's $1.5 trillion tax cut package appeared to have no major impact on businesses' capital investment or hiring plans, according to a survey released a year after the biggest overhaul of the tax code in more than 30 years.
The National Association of Business Economics' quarterly business conditions poll, published on Monday, found that while some companies reported accelerating investments because of lower corporate taxes, 84 percent of respondents said they had not changed plans. That compares to 81 percent in the previous survey published in October.
(Excerpt) Read more at nbcnews.com ...
It's what they do.
Thanks for the truthful reporting Reuters I know you wouldn’t lie about this.
Exactly what I was thinking (what you said).
It's not complete and total B/S. It's the truth. Most of the money that has been brought back from overseas by the companies and most of the money saved by the companies has been spent on stock buy-backs....as C19 said.
I'm in the market daily, you can PM me and I will show you how many millions I traded last year alone (I'll screen cap my 1099-B. Part of my trading plan has been the stock buy-back blackouts.
S&P 500 companies bought back more than $800 BILLION this year...which was far more than the old record set in 2007. Most all of that has come thanks to the tax cuts.
This is a HUGE reason for the rise in the market this year between February and October....corporate liquidity injection. If the companies were not injecting money into the system by buying their OWN stock...the markets would be a LOT lower right now. Take JNJ for example: When it tanked on the asbestos news, what did they do? They bought several million shares of their own stock. That stopped the slide.
It doesn't take a lot of research or imagination to figure out what the markets would look like if you take between $1 - $1.5 trillion out of them because the companies are using the money they are getting from tax breaks to buy back their own stock. Again...this is not an opinion....this is a well-known fact. Everyone in the world of finance knows this. Are they using it all? Certainly not...but they are using a LARGE portion of it. IT's not a matter to debate. It's a fact. I suggest you read it straight from the source: Stock Buybacks
Yes, which is why jobs are now falling out of trees. This isn't even plausible enough to call fake news. D'oh!
Not surprised. CEO’s and senior corporate types have long ago ceased to believe in capitalism.
Anyone who pretends the tax cuts don’t contribute in a big way to economic growth and employment are either biased or fools
I agree that jiggering with the tax code no doubt had positives, but also winners and losers. Reducing regulations and restrictions no doubt had much greater benefit without increasing the deficit. Overall, considering that the Democrats would tank the economy by increasing regulation and increasing the tax rate... I will gladly take the whole package.
In other news unemployment is at an all time low, stagnant wages have started climbing measurably and once shuttered factories and foundries are being put back to work.
We’re trying to build a house.
Can’t even get builders to CALL US BACK.
It does have an impact on small businesses. That is not what the article is stating. You can take 100K X the size of your business and it doesn't equal Wal-mart who has bought back over $20 Billion in stock alone. Apple has bought back around $100 Billion.
When you compare the tax breaks your company got and what you did with it to a mega-cap company and what THEY did with it...it's peanuts and watermelons. Is your company even listed? Is it a pink sheet? A penny?
Sorry...in the grand scheme of things here...it's night and day. The article is talking about the TUNA in the ocean...not the anchovies. If you just Google, Bing (search) "stock buybacks tax cuts" you'll get a better picture of exactly what is happening from multiple sources...not just one...many from investing platforms. It's eye-opening for anyone wanting to have their eyes actually opened.
Yeah, and I’m sure many of these corporations realized an increase in cash flow due directly to the tax cuts and regulations cuts. And I’m just as sure many companies invested in more than just stock buybacks (not that there’s anything wrong with buybacks).
I suggest you actually do a little research. This is so well known across the world of finance that people here that say it’s not happening look silly. Do your homework. Search “stock buybacks tax cuts” and have your eyes opened.
SO What!
You got a bonus that you would NEVER have gotten without the Tax Cut.
I live in Central Missouri and the power company I get my electricity from (Union Electric) sent a letter last year telling all of it's customers would be getting a 6% reduction in their rates because of the tax cuts!
According to the Bureau of Labor Statistics, since the end of the Great Recession, small businesses have created 62 percent of all net new private-sector jobs.Apr 17, 2018
Anyone concerned about truth (which I thought we were on this site) can just do a cursory search and see that most tax cuts were used for stock buybacks. Again, because I'm in the markets I've known about it for almost a year...but it's been posted on this site several times.
And there is something wrong with buybacks - eventually, you run out of $ to buy the stocks back with and it interrupts the natural flow of the price (it's manipulation). It pumps the market up WAY too much and that's how you get years like 2008 and 2009 and months like October and December (blackout periods).
Now, personally, I don't care either way. I trade mostly futures contracts (/ES, /NQ, /GS, /ZF, /ZF mainly during a crises and /NG and /CL or currencies otherwise). I make money whether it skyrockets or craters. There is exactly the same amount of money to be made going long or short....it's just one is made a lot faster (short) than the other. :-)
But for the average investor...well...it's very painful.
During the 2000 presidential campaign the media, obviously on orders from their Democrat masters, accused W Bush of “talking the economy down” just to get elected. Now the media are talking the economy down to hurt Trump.
See tagline...
That's true...but that has ZERO to do with these tax cuts and the stock buybacks in question. They are two separate issues. The article deals with what corporate America did with their share of the tax breaks. Do a simple search on "stock buybacks tax cuts" and do some reading. I posted and article from nasdaq.com to Jim, you can read that one if you wish. Anyone who is in the markets for a living (which I am) knows this as a fact. It's not an opinion and it's not debatable.
Part of my trading strategy is to buy calls or puts on stocks that are entering blackout periods....and I only trade options (I'm mostly into trading futures contracts) on companies that buy back a lot of their own stock. I track this through several platforms. Why? Because I can buy puts on a stock entering a blackout period before earnings knowing it will usually make me $ if other parameters are right....and I can buy the calls when they resume buying after they report.
Again, do some research.
The positive benefit to small and medium-sized businesses was immense. But I think to a lot of FReepers, the only thing that matters is that the tax cut didn’t induce any Fortune 500 companies to hire more 53-year-old COBOL programmers. :)
the economy is growing well and unemployment is at its lowest level in 60 years. Much of the reason for that were trump’s corporate tax cuts. Which incidentally did not hurt tax revenues.
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