Politics Thread

[Caf]

My extremely intelligent father, aeronautical engineer and well versed in economics, believed that Corporations would reinvest back into itself with their newfound tax break. What I could not figure out was that he knew what happened last time Bush allowed the repatriation of foreign held funds. He knew a lion share when to the purchase of treasury stock but insisted this one would be different. I just laughed at him.

Is he versed in accounting and corporate finance? People gas-lighting over this are a bit misinformed. These companies are repatriating retained earnings. Even after the repatriation tax holiday it still makes more sense to fund investment with debt in this environment. 8% and 15.5% tax are lower but still significantly higher than the 2-5% rates companies like Apple can get on bonds. I would much rather see earnings given to investors in the form of dividends, but I'm not going to fault a corporation for lowering their cost of capital right before the interest rate party is over.

[ArizonaXUGrad]

Is he versed in accounting and corporate finance? People gas-lighting over this are a bit misinformed. These companies are repatriating retained earnings. Even after the repatriation tax holiday it still makes more sense to fund investment with debt in this environment. 8% and 15.5% tax are lower but still significantly higher than the 2-5% rates companies like Apple can get on bonds. I would much rather see earnings given to investors in the form of dividends, but I'm not going to fault a corporation for lowering their cost of capital right before the interest rate party is over.

He has the benefit of me being a corporate accountant at a public company. Those things you mention don’t help the employee one bit.

Edit to toss in that in my years, I have yet to see a company ever pay off big debt. It’s always refinanced for a new rate. I am class of ‘98 so I have a few years into this.


Sent from my iPhone using Tapatalk

[Caf]

He has the benefit of me being a corporate accountant at a public company. Those things you mention don’t help the employee one bit.

Edit to toss in that in my years, I have yet to see a company ever pay off big debt. It’s always refinanced for a new rate. I am class of ‘98 so I have a few years into this.


Sent from my iPhone using Tapatalk

When did I say or imply that it directly helps the employee? There are practically zero instances of a company using retained earnings to benefit employees over shareholders. Wages are strictly functions of the labor market. No company is going to pay more just because they had strong earnings.

[GoMuskies]

I am class of ‘98 so I have a few years into this.

Class of '98 accounting (and finance) grads rule.

[ArizonaXUGrad]

When did I say or imply that it directly helps the employee? There are practically zero instances of a company using retained earnings to benefit employees over shareholders. Wages are strictly functions of the labor market. No company is going to pay more just because they had strong earnings.

This, however, is going to be the number one thing that causes the next recession. Well, combined with ever increasing inflation will lead individuals and families with a decreasing ability to pay for necessities in their life.

[Caf]

This, however, is going to be the number one thing that causes the next recession. Well, combined with ever increasing inflation will lead individuals and families with a decreasing ability to pay for necessities in their life.

I wouldn't say that.

[Caf]

I wouldn't say that.

Would*

[boozehound]

Maybe it's when a sitting U.S. President can't decide if he trusts our intelligence agencies or the President of Russia.

I'm afraid that the answer is never. I'm genuinely concerned that we have reached the point in our life cycle as a nation where we are too stupid and too divided to govern ourselves effectively.

Trump is a disaster - a pure populist who doesn't understand or care about long term implications of his decisions or government spending. He will do or say whatever makes him popular right now with almost not regard for the future. That's without getting into his bizarre behavior around Russia. The fact that he isn't getting more heat from his party at this point should tell you all you need to know.

Unfortunately it looks like the Democrats are just going to keep tacking further to the left, so we will end up with Trump or a Bernie Sanders type of candidate in 2020, neither of which will be good for the country.

[noteggs]

Would*

Funny and very clever!

[ArizonaXUGrad]

Now Trump backing off of North Korea shutting down their nuclear weapons program. He is saying now no timeline is set. I guess that Peace prize should be put on ice.

Edit: Go ahead and toss in some Russia NRA collusion for good measure. This is fun.