The Numbers Behind Walmart’s Pay Raise: DealBook Briefing
- 6 years ago
The Numbers Behind Walmart’s Pay Raise: DealBook Briefing
Bloomberg reports: “A timing quirk in the tax overhaul
that President Donald Trump signed last month may be good news for companies such as Apple Inc., Microsoft Corp. and Cisco Systems Inc., all of which began their fiscal years before Jan. 1.”
The provision at issue, “in effect, gives a company until the end of its fiscal year to measure what’s cash and what isn’t for tax purposes,”
That means companies, which began their fiscal years before Jan. 1, have more time “to reduce foreign cash they’ll accumulate this year.”
Apple, for one, “may be able to lop more than $4 billion off a future tax bill,” according to Stephen Shay, a tax
and business law professor at Harvard Law School, who wrote the “potential loophole” last month.
• Central banks’ continuing withdrawal from crisis-era bond purchases
• Investor worry that inflation will edge up
• That Bloomberg report about China hesitating over Treasury purchases (although a Chinese government agency has cast doubt on it)
The even bigger worry
That China will use its central bank to throw a brushback pitch at the U. S. Here’s what Brad Setser of the Council on Foreign Relations told the NYT:
“It is possible too that China wants to signal to its people
that it will not keep financing the U. S. when the U. S. is not treating China with respect.”
Analysts at the Eurasia Group found that scenario unlikely in a recent note.
Bloomberg reports: “A timing quirk in the tax overhaul
that President Donald Trump signed last month may be good news for companies such as Apple Inc., Microsoft Corp. and Cisco Systems Inc., all of which began their fiscal years before Jan. 1.”
The provision at issue, “in effect, gives a company until the end of its fiscal year to measure what’s cash and what isn’t for tax purposes,”
That means companies, which began their fiscal years before Jan. 1, have more time “to reduce foreign cash they’ll accumulate this year.”
Apple, for one, “may be able to lop more than $4 billion off a future tax bill,” according to Stephen Shay, a tax
and business law professor at Harvard Law School, who wrote the “potential loophole” last month.
• Central banks’ continuing withdrawal from crisis-era bond purchases
• Investor worry that inflation will edge up
• That Bloomberg report about China hesitating over Treasury purchases (although a Chinese government agency has cast doubt on it)
The even bigger worry
That China will use its central bank to throw a brushback pitch at the U. S. Here’s what Brad Setser of the Council on Foreign Relations told the NYT:
“It is possible too that China wants to signal to its people
that it will not keep financing the U. S. when the U. S. is not treating China with respect.”
Analysts at the Eurasia Group found that scenario unlikely in a recent note.