Article is missing a lot of information - Like why with a 21% rate companies didn't pay taxes, or , what was the 'tax rebate' for? Also it shows the stock price change as if the company get's that money. Companies only get the initial IPO money for shares sold.
Taxes are passed through to consumers anyway; Corporations don't pay taxes - they collect them from the customer.
By itself, it seems like a nonsequitor for the article to mention that the tax rate changed from 35% to 21%, since if 35% of X is $0, then 21% of X is still gonna be $0.
However the new benefit for companies is that when the lose money, instead of having to use the loss to offset future profits, they can also use it to offset past profits. Offsetting past income taxed at 35% (from before the Trump tax cuts) is more valuable than offsetting future income which in theory will be taxed at 21%.
Comments
Article is missing a lot of information - Like why with a 21% rate companies didn't pay taxes, or , what was the 'tax rebate' for? Also it shows the stock price change as if the company get's that money. Companies only get the initial IPO money for shares sold.
Taxes are passed through to consumers anyway; Corporations don't pay taxes - they collect them from the customer.
By itself, it seems like a nonsequitor for the article to mention that the tax rate changed from 35% to 21%, since if 35% of X is $0, then 21% of X is still gonna be $0.
However the new benefit for companies is that when the lose money, instead of having to use the loss to offset future profits, they can also use it to offset past profits. Offsetting past income taxed at 35% (from before the Trump tax cuts) is more valuable than offsetting future income which in theory will be taxed at 21%.