And lower taxes for corporations should
mean higher corporate profits, which should boost the value of stocks.
Not exact matches
That
means that as gross domestic product (GDP) has expanded, the gains have flowed to
corporate and owners»
profits and to the state, which is delighted to collect
higher taxes at every level of government, from property taxes to income taxes.
That
means restoring
higher marginal income rates, capital gains taxes,
higher effective
corporate rates,
higher nominal rates, taxing foreign
profits even without repatriation, and no tax holiday.
Better
corporate performance
means higher profits, which will ultimately
mean a larger nest egg when you reach retirement age.
The profitability factor often invests in more expensive companies:
high corporate profits can
mean revert to lower
profits in the future due to an increase in competition or a decrease in the barriers to entry.