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Tax Reform Wheel Tracker
Topic Started: Jan 11 2018, 07:03 AM (558 Views)
George K
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Finally
Copper
Feb 4 2018, 01:42 PM
Stop spending.

Now, that's just crazy talk.
A guide to GKSR: Click

"Now look here, you Baltic gas passer... "
- Mik, 6/14/08


Nothing is as effective as homeopathy.

Given the way acetaminophen and alcohol donít mix, I havenít kept a bottle of Tylenol anywhere in the house for years.
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George K
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Finally
Chipotle

Quote:
 
The company is rolling out benefits reaching all of its 71,000 employees, including special cash and stock bonuses and enhanced paid and parental leave.

Qualified hourly employees and salaried restaurant employees will receive a special one-time cash bonus of up to $1,000, and some staff employees will receive a one-time stock grant.

Other offerings will include accelerated training programs, and additional paid parental leave for everyone, from hourly managers to salaried employees.

The company also added life insurance and short-term disability insurance coverage for hourly restaurant managers.
A guide to GKSR: Click

"Now look here, you Baltic gas passer... "
- Mik, 6/14/08


Nothing is as effective as homeopathy.

Given the way acetaminophen and alcohol donít mix, I havenít kept a bottle of Tylenol anywhere in the house for years.
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Luke's Dad
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Emperor Pengin
You know, I can't help but wonder about the possibility of these raises and bonuses causing inflationary pressure. Would it make more sense to do slightly smaller raises and bonuses, and offer some price drops back to the consumer, instead?
The problem with having an open mind is that people keep trying to put things in it.
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jon-nyc
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Cheers
Bonuses are a one time event. Great morale builder, and great PR. Raises and price drops have a lot of friction that makes them hard to reverse.

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Axtremus
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HOLY CARP!!!
The business tax rates' reductions are permanent.
Why are the increase in workers' remunerations not permanent?
Three possibilities:
1. Businesses need more time to plan/institute "permanent" changes
2. Businesses too greedy and want to pocket all the benefits of the tax rate reductions in the future, not sharing with the workers
3. Businesses not confident that the positive effects of the tax rate reductions will last

1 as an excuse can only lasts a short while, likely no more than a year.

2 can go on forever

3 as an excuse can also only lasts a short while ... after some time observing, businesses eventually have to conclude whether the positive effects of tax rate reductions are long lasting or ephemeral.

Give this tax cut thing 2~3 years, and we'll see whether the business tax rate cuts will lead to long lasting boost to workers' income (and if so, by how much).
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Davis
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Senior Carp
I predict wages are going up and it will manifest itself in BLS reports. I see people are making predictions so we can review. Wage raises do take a while in any planning cycle.
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Copper
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Shortstop
Axtremus
Feb 7 2018, 02:59 PM

Why are the increase in workers' remunerations not permanent?

Freedom.
The Confederate soldier was peculiar in that he was ever ready to fight, but never ready to submit to the routine duty and discipline of the camp or the march. The soldiers were determined to be soldiers after their own notions, and do their duty, for the love of it, as they thought best. Carlton McCarthy
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Davis
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Senior Carp
https://www.marketwatch.com/story/jobless-claims-drop-9000-to-221000-remain-near-45-year-low-2018-02-08
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George K
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Finally
CVS

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CVS will boost starting pay for hourly employees to $11 per hour from $9 per hour, starting in April. Pay ranges and rates will be adjusted for many of its retail pharmacy technicians, front store associates and other hourly retail employees later in the year. Full-time employees will qualify for as much as four weeks of paid parental leave, and worker health-care premiums will hold steady at current rates.

The health-care company has more than 240,000 employees.
A guide to GKSR: Click

"Now look here, you Baltic gas passer... "
- Mik, 6/14/08


Nothing is as effective as homeopathy.

Given the way acetaminophen and alcohol donít mix, I havenít kept a bottle of Tylenol anywhere in the house for years.
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John Galt
Fulla-Carp
Quote:
 
While many companies are using President Trump's tax cuts to give workers bonuses or raise wages, the maker of Kleenex and Huggies is doing the opposite.

Kimberly-Clark announced on Tuesday that it would cut between 5,000 and 5,500 jobs, or roughly 12 or 13% of the company's employees.

The personal care product company also announced plans to shut down 10 manufacturing facilities. The restructuring program is estimated to save Kimberly-Clark $500 to $550 million by the end of 2021.

The company said it plans to use savings from the Republican tax plan to fund the cuts and other restructuring efforts, The New York Times reported. Tax savings would additionally be used for capital investments and to allocate capital to shareholders, CFO Maria Henry said in a call with analysts.


http://www.businessinsider.com/kimberly-clark-pays-for-layoffs-with-trump-tax-cuts-2018-1

edit: They got Wisconsin state tax incentives, too.

Quote:
 
One of the Fox Valleyís largest employers has announced it is closing two Wisconsin plants and eliminating 600 jobsóbut that wonít change its eligibility to claim a state tax credit that nearly eliminates the requirement for manufacturers to pay state income taxes. Thatís because businesses can claim the credit even if they lay off workers, shutter factories, or ship jobs overseas.

The Manufacturing and Agriculture Credit costs the state an estimated $276 million this year in tax breaks for manufacturers and agricultural producers. Thatís a lot of money. For example, thatís more than all the tuition and fees combined paid by students in Wisconsinís technical college system.

For such a big tax break, you might think that the state would require a great deal of accountability on the part of manufacturers receiving the credit. But in fact, there is no requirement that businesses create even a single job to receive the credit. Kimberly-Clarkís announcement illustrates that allowing a corporation to get away with paying next to nothing in income taxes doesnít mean that corporation will increase the number of workers it employs.


https://urbanmilwaukee.com/2018/02/12/wisconsin-budget-the-lesson-of-kimberly-clark-layoffs/
Edited by John Galt, Feb 13 2018, 06:55 AM.
Let us begin anew, remembering on both sides that civility is not a sign of weakness.
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Copper
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Shortstop
John Galt
Feb 13 2018, 06:52 AM

Quote:
 
For such a big tax break, you might think that the state would require a great deal of accountability on the part of manufacturers receiving the credit.



Making a deal is an art.
The Confederate soldier was peculiar in that he was ever ready to fight, but never ready to submit to the routine duty and discipline of the camp or the march. The soldiers were determined to be soldiers after their own notions, and do their duty, for the love of it, as they thought best. Carlton McCarthy
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Davis
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Senior Carp
In the last 9 days the tracker has gone from 3 million to 3.5 million people. Thatís more than 50,000 a day, tough pace to keep up.
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John Galt
Fulla-Carp
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Donald Trumpís promise that corporations will use his giant new tax cut to make new investments and raise workersí wages is proving to be about as truthful as his promise to release his tax returns.

The results are coming in, and guess what? Almost all the extra money is going into stock buybacks. Since the tax cut became law, buy-backs have surged to $88.6 billion. Thatís more than double the amount of buybacks over the same period last year, according to data provided by Birinyi Associates.

Compare this with the paltry $2.5 billion worth of employee bonuses corporations say theyíll dispense in response to the tax law, and you see the bonuses for what they are: a small fig leaf to disguise the big buybacks....

Money spent on buybacks isnít reinvested in new equipment, research or factories. Buybacks donít add jobs or raise wages. They donít increase productivity. They donít grow the American economy.

Yet CEOs love buybacks because most CEO pay is now in shares of stock and stock options rather than cash. So when share prices go up, executives reap a bonanza.

At the same time, the value of CEO pay from previous years also rises in what amounts to a retroactive (and off the books) pay increase ó on top of their already humongous compensation packages.

Big investors also love buybacks because they increase the value of their stock portfolios. Now that the richest 10 percent of Americans own 84 percent of all shares of stock (up from 77 percent at the turn of the century), this means even more wealth at the top.

Buybacks used to be illegal. The Securities and Exchange Commission considered them unlawful means of manipulating stock prices, in violation of the Securities Acts of 1933 and 1934.

In those days, the typical corporation put about half its profits into research and development, plant and equipment, worker retraining, additional jobs and higher wages. But under Ronald Reagan, who rhapsodized about the ďmagic of the market,Ē the SEC legalized buybacks.

After that, buybacks took off. Just in the past decade, 94 percent of corporate profits have been devoted to buybacks and dividends, according to researchers at the Academic-Industry Research Network.

Last year, big American corporations spent a record $780 billion buying back their shares of stock. And that was before the new tax law.

Put another way, the new tax law is giving Americaís wealthy not one but two big windfalls: They stand to gain the most from the tax cuts for individuals, and theyíre the big winners from the tax cuts for corporations.


http://www.heraldextra.com/news/opinion/national-editorials/reich-trump-s-tax-cut-is-fueling-stock-buybacks-not/article_35137826-8ae4-5658-891a-55fd477fb878.html

Lots more about stock buybacks from Seeking Alpha: https://seekingalpha.com/article/4139081-stock-buybacks-make-rich-richer-poorer
Let us begin anew, remembering on both sides that civility is not a sign of weakness.
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Davis
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Senior Carp
Robert Reich, is this why the market surged, but if so why are we correcting? The massive amounts you are talking about didnít move the market and those companies sure took a haircut? What is going on?
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