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Non-Tech : Kirk's Market Thoughts
COHR 199.14+0.8%1:04 PM EST
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To: Gottfried who wrote (1153)5/4/2014 2:30:40 PM
From: Jerome  Read Replies (2) of 26759
 
Hi Gottfried....interesting article but mostly wishful dreaming...

Consider this...about one third of the S&P 500 companies pay no federal tax at all. GE and GM have not paid a dime in Federal taxes for over 10 years. GM has had tax losses carried forward for the past 10 years. GE has the best tax accountants available They have turned tax avoidance into an art form.

So what good would a zero tax rate for corporations be, since they have it now. Look at GE (which I own)...they now have about $53 billion dollars parked overseas and will use $13 billion of that for the Alstom deal..Now if GE has $53 billion or $57 billion in cash overseas does it make any difference to the stock price?

The wealthy need not fear; eliminating corporate taxes would lead to a jump in business earnings and, consequently, stock prices.
That is a giant leap in faith.......business earnings and cash on hand for most corporations couldn't be better. Active traders see this everyday....a company improves their cash on hand position.....and its greeted with a big yawn from the market.

Corporate tax reform is highly unlikely. Too many lobbyist's on both sides the tax change idea to make any change possible.

The companies I own have tons of cash on hand....they do not need more cash.....what they need is ideas of where to expand, who to buy out, and some solid ideas for research into future projects. Lack of future vision is hurting companies a lot more than lack of cash.
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