Corporations engage in mergers and acquisitions for a multitude of reasons, including synergy, product line expansion and greater geographic reach. Recently, tax-motivated deals related to freeing up trapped cash and/or corporate inversions have become more newsworthy. Corporate Tax Rates The top US corporate tax rate is currently 35%, the world’s highest. Adding state taxes increases this rate […]
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Signs of Improving Capex
While the economy has certainly strengthened over the past few years, business spending on capital equipment has lagged. After peaking in 3Q11, the year-over-year growth rate fell for five out of six quarters. There was a slight rise in 2013’s second half; however, the figure retreated in the first quarter of 2014. Improving Capex On […]
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No Changes to Fed’s Interest Rate Guidance
In her Friday speech from the Fed’s meeting in Jackson Hole, Wyoming, Janet Yellen remained non-committal on when the Fed would start raising interest rates. Recent data indicates the economy continues to improve (albeit slowly). However, the Fed chairwoman remains concerned about labor-market conditions. Unemployment While the unemployment rate has fallen significantly from its October […]
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The Internet of Things
The importance of the Internet of Things (IoT) in our everyday lives is increasing. It seems that every day more and more devices and even appliances are connecting to the Internet. Devices ranging from door locks to toll booths to refrigerators are Internet-connected, smartphone accessible and responsive. The increasing connectivity of once inert objects represents […]
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Record Levels of Corporate Debt and Cash
Accumulating cash overseas is one way in which U.S.-based corporations can keep their tax bills lower. Since 2008, the low interest-rate environment has made it easier for companies to buy back stock, pay dividends and make acquisitions without needing to use the cash held by their overseas subsidiaries to fund such activities. As a general rule, […]