Another Reason to Worry About Profits: Uncle Sam is Propping Them Up With Tax Breaks

Microsoft Corporation Effective Tax Rate TTM Chart

Microsoft Corporation Effective Tax Rate TTM Chart by YCharts

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.

Jeff Bailey is an editor for the YCharts Pro Investor Service which includes professional stock charts, stock ratings, stock screener and portfolio strategies.



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