Another Reason to Worry About Profits: Uncle Sam is Propping Them Up With Tax Breaks
It’s your God given right as an American – especially if you’re an investor or corporate nabob -- to bitch about taxes. But, as the Wall Street Journal’s Damian Paletta brilliantly pointed out last week, corporate taxes have seldom been so low. That’s boosting reported after-tax profits, of course, and helping to lift stock prices. As some corporate tax breaks expire, the likes of Microsoft (MSFT), Abbott (ABT), Coca-Cola (KO) and many others – see YCharts Screener for big market cap companies and their effective tax rates – could struggle to continue posting stronger net income. Enjoy it while it lasts.
Filed under: Economic Watch