Re: corprate tax cut and retirement plans ?
[Re: Kansas Cat]
#7005457
10/01/20 11:15 AM
10/01/20 11:15 AM
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Joined: Mar 2007
Posts: 35,175 McGrath, AK
white17
"General (Mr.Sunshine) Washington"
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"General (Mr.Sunshine) Washington"
Joined: Mar 2007
Posts: 35,175
McGrath, AK
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White 17, you don't think the level of corporate taxation affects stock price? 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
Mean As Nails
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Re: corprate tax cut and retirement plans ?
[Re: Bigfoot]
#7005460
10/01/20 11:22 AM
10/01/20 11:22 AM
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Joined: Nov 2012
Posts: 1,084 midland, michigan
midlander
trapper
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trapper
Joined: Nov 2012
Posts: 1,084
midland, michigan
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White 17, you don't think the level of corporate taxation affects stock price? 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
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Re: corprate tax cut and retirement plans ?
[Re: white17]
#7005597
10/01/20 02:37 PM
10/01/20 02:37 PM
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Joined: Dec 2006
Posts: 11,354 East-Central Wisconsin
bblwi
trapper
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Joined: Dec 2006
Posts: 11,354
East-Central Wisconsin
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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
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Re: corprate tax cut and retirement plans ?
[Re: white17]
#7005625
10/01/20 03:14 PM
10/01/20 03:14 PM
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Joined: Dec 2006
Posts: 2,213 central Missouri
Bigfoot
OP
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OP
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Joined: Dec 2006
Posts: 2,213
central Missouri
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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. i thought capital expenditures was a tax wright off in ifself , and stock buybacks was discouraged in the last tax cut
Last edited by Bigfoot; 10/01/20 03:14 PM.
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