Ok. I didnt know you meant just recently

One and done. So, yes. It's already priced in?

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Obama's Legacy is Trump.
And dead cops.

"One guy lays the pipe, the other guy smokes it"--Clint Eastwood

Exactly right. Executives are motivated & incentivized to focus short term, quarter over quarter & its a damn shame.

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CSFMB 2014 Nascar Pick 'em Champion

We don’t have a trillion-dollar debt because we haven’t taxed enough; we have a trillion-dollar debt because we spend too much. — Ronald Reagan

Jim Cramer?

And another consequence of ZIRP is that companies are borrowing trillions to buy back stock. For Christ's sake, Apple--which is sitting on $200 billion in cash-- is borrowing money to buy back shares!

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The amount of buybacks and the rise of the market matchup pretty well if you put them both on a graph...

A consequence of our messed up tax system, their cash is "stuck" in foreign jurisdictions. If they repatriate it, they will have to pay federal taxes. When they report earnings, they do not account for those taxes under GAAP provisions called permanent reinvestment. We need to move to a territorial system like the rest of the world, but hey, why not keep up with another free market distortion?

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Hawaii (fuck) You

That is so many levels of wrong

Huh? Those are the facts with the only opinion in my commentary being our tax system creating free market distortions.

Do you know how our corporate income tax system works? Apple disclosure:

"The foreign provision for income taxes is based on foreign pre-tax earnings of $33.6 billion, $30.5 billion and $36.8 billion in 2014, 2013 and 2012, respectively. The Company’s consolidated financial statements provide for any related tax liability on undistributed earnings that the Company does not intend to be indefinitely reinvested outside the U.S. Substantially all of the Company’s undistributed international earnings intended to be indefinitely reinvested in operations outside the U.S. were generated by subsidiaries organized in Ireland, which has a statutory tax rate of 12.5%. As of September 27, 2014, U.S. income taxes have not been provided on a cumulative total of $69.7 billion of such earnings. The amount of unrecognized deferred tax liability related to these temporary differences is estimated to be approximately $23.3 billion.

As of September 27, 2014 and September 28, 2013, $137.1 billion and $111.3 billion, respectively, of the Company’s cash, cash equivalents and marketable securities were held by foreign subsidiaries and are generally based in U.S. dollar-denominated holdings. Amounts held by foreign subsidiaries are generally subject to U.S. income taxation on repatriation to the U.S. "

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Hawaii (fuck) You

Not that your facts are wrong. The system that allows that kind of shit legally is wrong

Lots wrong with the entire system. Plenty of misplaced incentives.

Simple example:

The IRS only let's companies deduct salaries of executives that are $1,000,000 or less. If you pay a salary above that, you cannot deduct that expense. Sounds like a great idea that we can all agree upon.

Reality: Companies simply give out ridiculous amounts of stock options, restricted stock, and bonuses because those can be deducted, and their cost is obscured by accounting. Thus you end up handing executives lots of stock, which causes shareholder dilution. The company then takes hard earned cash flow and buys back stock to counter the shareholder dilution caused from stock options. Effectively, the operating cash flow is going into executives pockets.

"Tax Deductibility of Compensation Expense. Section 162(m) of the Internal Revenue Code (the “Code”) places a $1 million limit on the amount of compensation the Company can deduct in any one year for compensation paid to the chief executive officer and the three most highly-compensated executive officers employed by the Company at the end of the year (other than the Company’s chief financial officer). However, the $1 million deduction limit generally does not apply to compensation that is performance-based and provided under a shareholder-approved plan. "

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Hawaii (fuck) You

We need a drastically simplified flat tax system, but bureaucrats, politicians & Lawyers like things to be so complicated that the regular Joe cant figure them out.

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CSFMB 2014 Nascar Pick 'em Champion

We don’t have a trillion-dollar debt because we haven’t taxed enough; we have a trillion-dollar debt because we spend too much. — Ronald Reagan

For tax purposes shouldn't all payroll even executives be a cost anyway? How can they be tax deductible when costs come out before profit is taxed?

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Elections have consequences.

Would have liked to have seen BILLIONS put into the infrastructure of this country...and let the lower and middle class boost the economy, instead of just boosting the stock market as many of those people in the lower and middle class, didnt participate in the wealth increase over the Obama Terms.

The Obama non supporters have had the big increase in wealth and those who have supported him the most have been left behind during his terms. Sorry for not thinking that is a good thing.

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"That's what the internet is for. Slandering others anonymously." Banky
“Been that way since one monkey looked at the sun and told the other monkey ‘He said for you to give me your fuckin’ share.’”

Infrastructure spending was all those "shovel ready" jobs that were allegedly a large part of 800 billion dollar ARRA many moons ago.

I know some of it was done to appease any critics and its hard to get money to the lower levels of people in society without everyone getting a favor, but this was the #CHANGE that was going to come? and never showed up....

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"That's what the internet is for. Slandering others anonymously." Banky
“Been that way since one monkey looked at the sun and told the other monkey ‘He said for you to give me your fuckin’ share.’”

I don't see why simplifying the system needs to be coupled with flattening the rates. Get rid of the deductions, exemptions, and special cases. Have a zero income tax up to 100k, and then 30-50% after that. Simple and perfectly fair, as it is equivalent to giving everyone a 100k basis in their own labor. The idea that any revenue earned from labor is zero-basis is inherently more favorable to capital. Working hard is not a windfall.

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Look over there! A dry ice factory. A good place to get some thinking done.
Did I forget to mention, forget to mention Memphis? Home of Elvis and the ancient Greeks.

But then, what's my incentive to earn over $99,999 if I'm going to lose $30K after that next dollar? I would have to jump to $130K just to clear $100K.

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Not a mult.

Not what I'm proposing at all. If you earn $110k you would be taxed on $10k. When calculating net income, the basis is subtracted from the gross income.

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Look over there! A dry ice factory. A good place to get some thinking done.
Did I forget to mention, forget to mention Memphis? Home of Elvis and the ancient Greeks.

$100k is way too high. Only 20% of households break that mark, and if you are talking about individuals then that number goes way down.

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You do not talk to me like that! I work too hard to deal with this stuff! I work too hard! I'm an important member of the CSFMB! I drive a Dodge Stratus!

Agree you can't fund the system with income taxes starting at $100,0000. Keep in mind the current system has relatively high tax rates for wages over that level (25% going up to 39.6% at Federal level). And if you think deductions makes a big difference, then you don't understand how the system takes away deductions with the AMT and/or phaseouts. One could argue that different rates for wages and capital earnings is part of the problem, and many high earners get a significant portion of their incomes from non wage incomes. It may make sense to standardize those rates.

Another thing to keep in mind that guys like Buffet get rich from capital gains, but they don't pay taxes until they recognize the gains. Since he doesn't sell most of his holdings, those gains are deferred indefinitely.

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Hawaii (fuck) You

There is never going to be any fundamental change to the tax system. They've been talking about it forever and haven't done anything

Plus now the IRS is interwoven into Obamacare, so its only going to get worse, not better.

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Game time, get your mouses ready!

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"That's what the internet is for. Slandering others anonymously." Banky
“Been that way since one monkey looked at the sun and told the other monkey ‘He said for you to give me your fuckin’ share.’”

I'm tempted to buy some Vix strangles but just can't pull the trigger.

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No

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Be well

GO BEARS!!!

This reminds of the scene from Trading Places where everyone on the futures floor is waiting for the crop report.....

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Hawaii (fuck) You

No change

My guy (me) hit that nicely

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"That's what the internet is for. Slandering others anonymously." Banky
“Been that way since one monkey looked at the sun and told the other monkey ‘He said for you to give me your fuckin’ share.’”

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"That's what the internet is for. Slandering others anonymously." Banky
“Been that way since one monkey looked at the sun and told the other monkey ‘He said for you to give me your fuckin’ share.’”

As I feared, Fed citing/blaming "global developments."

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