Category: Corporations

What Does The Corporate Tax Cut Mean For Jobs Here At Home?

The tax plan creates a major new incentive for corporations to move – and create – jobs overseas. That’s because the plan permanently reduces the tax rate on corporations’ foreign income to about half their tax rate on income earned in the United States, or even lower in some cases. This permanent change will encourage … Continued

What Are The Main Tax Cuts In The New Law And How Much Are They Worth?

This new tax law includes some of the biggest changes to the federal tax code in the last thirty years. Some of these massive changes are permanent, some of them are temporary. The changes affect different people in different ways, depending on their income, family size, and employment. Below is a breakdown of the biggest … Continued

How Long Are The Tax Plan’s Changes In Effect?

The tax cuts for corporations are permanent, but the tax changes for individuals generally expire after 2025, except for two provisions that remain. Those two changes actually raise taxes on individuals. As a result, most individuals and families will face tax increases after 2025 and beyond, especially low- and middle-income families. Tax Cuts for Individuals … Continued

What Is A Stock Buyback, And How Is It Connected To The Tax Law?

Stock buybacks have increasingly been in the news since the passage of the new tax law. But what are they? A stock buyback is a tool used by corporations to deliver a benefit – akin to a bonus – to their major shareholders and, often, to their top executives. A stock buyback – also called … Continued

How Did Corporations Fare Under This Law?

The recently passed tax law’s most significant and lasting changes are to the corporate tax code. Starting this year, C-corporations will be taxed at a 21 percent rate, down from 35 percent. That represents a 40 percent cut in their tax rate. The law also created a territorial taxation system, changing how profits earned overseas … Continued

How Does the Tax Plan Affect My Job?

There are two ways the new tax law could meaningfully affect American jobs. First, the law creates enormous incentives for corporations to move jobs overseas. Over time, this could increase the trend toward outsourcing and offshoring. Second, the new law makes it cheaper for companies to replace jobs through automation. Shifting Jobs Overseas For many … Continued

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