Ive always assumed that corprate tax cuts directly added to our annuities and most 401k s, roth IRA and mutual funds . Is this right?

Only if your 'corporate' is in the giving mood....im guessing in most cases, that is a big NO.

I don't see why there would be a connection. The tax cut doesn't affect your retirement program unless you are invested in company stock.....if there is any. Even then it might not have an impact. A profit sharing arrangement may be affected somewhat

Bigfoot, your assumptions are correct. Lower corporate taxes lead to improved profitability which, in turn, lead to higher stock prices. This improves the performance of all the things you listed. Companies that have increasing profitability also tend to increase wages and hire more workers. The chance for upward mobility is also greater in an expanding company.

When an employee leaves a company that sponsors a 401k, and the departing employee is not fully vested to receive all of the company’s match amount, the forfeited match amount is prorated among the accounts of active employees. Employees with larger balances get more than newer employees. So, it’s could be said that restructuring or downsizing can help one’s 401k.

White 17, you don't think the level of corporate taxation affects stock price?

Cold comfort to those remaining until the next round of downsizing!

Oh absolutely. I thought I mentioned that when I referred to being invested in company stock or profit sharing. The way I understood the question .....he was asking about his retirement program getting a larger share of the company match simply because the company tax rate was lower.

Maybe I misunderstood him

This is also how I understood the question...would a corporare tax cut reflect more money going directly into a 401K, Roth and such. Ill stick with my previous answer but maybe I misunderstood also

I reread your post and you did say that. I was considering the question on a macro scale as opposed to firm specific(micro). The question was a bit vague. I, maybe incorrectly, assumed he meant the value of those investment vehicles in the global sense.

I seee one of my retirement accounts is up a little so the lost for the year so far is only 15.3%

Im not talking your personal tax liability . What im trying to spotlight is just how much the corporate tax cuts might help every person that has a retirement plan in the stock mrkt . Everybody thinks corporate tax cuts are for the rich when in reality it often directly increaseses the divedends payed to mutual funds wich make up a huge portion of most peoples retirement plan . A huge portion of the stock markt is made up of retirement money . Im just trying to get a better feel for just how much the corprate tax cuts directly impacts most amercans retirement plans .

OK. Yes I did misunderstand you. I thought you meant your personal plan relative to your employer.

Sure tax cuts CAN help companies bottom line and possibly its stock price. And you are right that a company MIGHT increase it's dividend. But it might also increase capital expenditures thus showing no real change in the net EPS. OR it could increase stock buybacks which also help the stock price.

Bottom line .IMO there is nothing good about higher taxes.

Amen. There is no doubt who writes the check when corporations pay FIT. The question is who supplies the money. The money is supplied by the consumers of the products/services. When a politician suggests we need higher taxes on corporations, he is either too dumb to understand this or he thinks 51% of voters are.

Or both !

What corporations do with their lowered tax requirements will determine how the economic engine is fueled .
The below link discusses the negative impacts of stock buy backs.

https://corpgov.law.harvard.edu/201...ks-on-workers-communities-and-investors/

There are opposing arguments and also if the companies to expand and grow, hire more, sell more etc. this will boos the economy.
If I own a lot of securities now, stock buy-backs are helpful and my retirement nest egg benefits. If stock prices rise it is much harder for young employed to make good gains in the market if their investment funds have to pay higher prices to get in. 401K funds benefit from growth, profit, dividends etc. etc. but to build retirement incomes similar to working income means a lot more has to be invested for a similar outcome. Still much better than not investing or in my opinion over investing in homes or housing with the idea that I can sell and downsize into a good financial retirement life.

Bryce

i thought capital expenditures was a tax wright off in ifself , and stock buybacks was discouraged in the last tax cut

Capital is expended in order to achieve growth. Capital is recaptured through depreciation. It normally can't be expensed. I believe the new tax law allowed some capital outlays to be expensed. A company buying back stock, is a company that doesn't necessarily see good growth opportunities in the immediate future.

I wonder how come everytime sombody ask Trump about his corprate tax cuts for the rich . He dosnt just say that 37% of the stock market is money from retirement funds . and over 5o% of house holds are invested in the stock market so its not just a tax cut for the rich . It dosnt take five seconds to say .

X2 Buybacks also can signal that a company has confidence that it is not short on capital.

Buybacks also can result in a better return on equity and higher EPS.

The same cash could be used to increase dividends but the buyback gives flexibility in timing the payout whereas a dividend increase does not. Also, the dividend is taxable and the benefit from the buyback is not....at least not right away.

Buybacks can also send the message that the company believes their shares are undervalued.

They could use the cash to pay down debt but that may not be the best use of the money. The return from a buyback could be greater than elimination of interest on debt.