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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: Petz who wrote (20875)	11/28/2000 4:22:51 PM
From: Joe NYC	Respond to of 275872

Petz, I was under the impression that the highest marginal tax rate for corporations was around 34%. I don't know if this tax rate has been increased as part of the Clinton tax increase. I have no idea about corporate tax rate on capital gains. Joe

To: Petz who wrote (20875)	11/28/2000 6:25:34 PM
From: jeff_boyd___	Read Replies (2) \| Respond to of 275872

Tax Rates - Hey I think I can contribute something here! The maximum Federal rate is 35% but you can't forget about state taxes, international taxes, and the fact that goodwill associated with stock acquisitions is not deductible. An individual investor generally can't predict tax rates, it is probably easiest to just use 38 to 40% unless something big like the tax valuation reserve that AMD had exists. As far as special rates on Intel's capital gains, I didn't look at their tax note, but they are subject to the same 35% Federal tax rate. Its pretty easy to structure things so they are not subject to much state tax, however, so they generally are subject to a lower rate than operational income. On your quarterly tax provision issue, if a company is using a rate on their quarterly financials that is less than the annual rate that is just because they are doing a poor job of estimating their annual tax rate as the quarterly rate is based on the anticipated annual tax rate. Deferred taxes relate to timing differences for when items are deductible (for example accelerated depreciation results in a deferred tax liability, but non-deductible accruals result in deferred tax assets). Hope this makes some sense. Jeff