http://www.cnbc.com/2016/01/29/the-fed-is-freaking-out-about-financial-markets-commentary.html Larry Kudlow proposes a way our of our economic difficulties. The question is will Congress and Obama do the right things to foster business growth? Somehow I don't think so, but stranger things have happened.
"Push the rate down to 15 percent for C-corps and S-corps. Provide easy repatriation of U.S. money overseas. And permit immediate tax write-offs for new-business-investment expenses" Aren't taxes on large businesses already sitting at around 30% in America? One of many reasons why American companies go overseas, because other countries are around 12.5%. I seriously don't see a cut that large ever happening, especially when the government doesn't understand the concept of spending less. To take this even further, they also need to top the fed from creating a bond bubble. They bought up a ton of bonds, then increased rates? WTH?
Decreasing taxes and reducing or eliminating regulations like Dodd-Frank, the ACA, administrative actions by the EPA and other admin agencies, etc is a key to growth. Tariffs, holding down rates, new and more taxes and regs, printing and pumping in excess money, more borrowing, and other modes of govt interference are anti-growth. Some of these measures may temporarily inflate assets and provide an emotional high for investors, but they do more harm than good in the grand scheme. Japan has had zero rates for a couple of decades now. Anyone see how they've been doing? They're now on the negative-rate train to nowhere.
Amen to lowering the tax rate. That and cleaning up the regulatory nightmare that is the current situation in this country. To get competitive, we're going to have to get real on those fronts and fast.
Interest rates are almost 0 and in hindsight the Dec increase was probably a mistake, but I don´t think they were expecting such drastic actions from China to start the new year. The USA is doing much better than anyone else in the world right now, but it is hard not to feel some pain as China and Russia collapse and Japan and EU have such big issues. This is a global economy, we can´t just shrug off the problems the rest of the world is having. Also the chance that anyone does anything to fix the tax code is almost 0 ( Rep or Dem). Here is the problem, in order to really fix it, you have to be bold and either convince the american people tax cuts for big business is needed, which isn´t going to fly.. or else the politicians need to cut loophools for their political donors, which also is not going to happen. What does happen is both sides put small loopholes into the tax code that benefits their donors, but at the same time isn´t big enough to draw anger from the masses. This has been going on for 50 years and is not going to change. For a politician it is perfect, keep your donors happy without pissing off the voters. And this is what leads to the tax code problems we have now... You have technically one of the highest tax rates for companies in the world, but almost no big companies pay that rate because they all have loopholes that were written especially for them. Exxon and large pharmaceutical companies make hundreds of billion dollars a year in taxes, yet pay 0 taxes.
Actually, Forbes has an interesting slide-show on just that. On the list of "Which Megacorps Pay Mega Taxes", number one is Exxon. Pfizer made the list too.
Big companies get tax breaks because of various reasons, such as expenses and paying (often large amounts) of taxes overseas. http://money.cnn.com/galleries/2010/news/1004/gallery.top_5_tax_bills/2.html It is a false belief held by the left that big corporations "pay zero taxes" on profits. Also false is the belief that oil companies get "government subsidies" - they get breaks and get to keep some of the money they earned - not gifts from the govt.
after March 2015 or after Russian sanctions, many things changed in stock market. DowJones created long term Bearish pattern and European markets also on same way. looking, next 2-3 years, commodity and currency market will remain hot. sometimes, comes in brain, why FED made rate hike so late ? what if they made rate hike after rate cuts in Asian markets started ? yes, but, if and but don't work in stock market. next president of US has to face strong challenges, I can see that from here. all global markets turning bearish. hope after Gold finished its bull Run, in months or years, stock markets will perform better. because of rate hikes, Gold will remain hot pick. I'm worried about 1 decision in future. hope south-china sea matter get solved peacefully and small country's fat dictator Kim Jong Un also another reason.
