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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: bruwin who wrote (60654)4/5/2018 6:46:38 AM
From: Spekulatius  Read Replies (1) | Respond to of 78753
 
Re FB - yes 10% is very low, but virtually no multinational US company payed the nominal income tax rate. Most companies paid probably around 20-25%. Now after the Tax cuts, this is less of an issue, since the corporate income tax is lowered to 25.7%, it’s becoming less of an issue. Most companies can also use accelerated depreciation and tech companies can write of stock purchase plan and stock options expenses to lower their tax rate.

I don’t think that if FB tax rate increases from 10.6% to 20%, it would materially change the thesis.