Sunday, April 30, 2017

Stock

Recent reports suggest that the new tax law will contain a provision allowing companies to bring home money from outside the country and pay only 8 to 12 percent tax. One concern is what they will do with the money. One plan includes a provision that some of the funds be used for infrastructure and other plans dictate different uses. This is important because some companies will want to use the funds to buy back stock and while this will be good for the stockholders it will not create any new jobs. It is risky when the government tells companies how they can spend their money but in this case it is the tax savings that created the new funds.

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