atans1

NYT is grinchy over Christmas present

In Media on 23/12/2017 at 4:35 am

Doesn’t like Trump’s Christmas present

“Well, we have a tremendous spirit for the tax reform,” Trump said. “This is going to be one of the great Christmas gifts to middle-income people.”

Die die must always say bad things about Trump or his works. But then FT reports that a New York based banker earning US$5m a year, will be paying an extra US$400-500000 in taxes

From NYT’s Dealbook

A merry “Taxmas,” but who’ll get the bigger present?
In a surely coincidental series of announcements, several companies — including AT&T, Comcast, Wells Fargo, Fifth Third Bancorp and Boeing — announced that they were giving their employees bonuses or higher wages, and increasing investment in light of the passage of the Republican tax bill.
An aim of the tax bill is to help American companies, in the belief that they will in turn bolster the economy as a whole. (Justin Fox of Bloomberg View writes that AT&T’s bonuses aren’t a gimmick, but a natural consequence of a corporate tax cut.)
But skeptics have asserted that those companies really just want to get on President Trump’s good side. (AT&T, for example, is seeking approval for its Time Warner deal despite a lawsuit by the Justice Department. At a news conference, Mr. Trump praised AT&T’s bonus and capital investment plans.)
Some back-of-the-envelope calculations, courtesy of Binyamin Appelbaum of the NYT:
A bigger question: How long can any economic stimulus from the tax bill last?
From Patricia Cohen of the NYT:
“The really hard question a year from now is going to be is how much of the miniboom we see is just an acceleration of stuff that was going to happen anyway or additional investment that is really going to spur the economy,” said Mihir A. Desai, a professor of finance at Harvard Business School.

And finally

The tax overhaul doesn’t change the fact that automation will still cause job losses, and that giants like Apple and Alphabet will still pay lower taxes than nascent rivals, Farhad Manjoo writes in his latest State of the Art. (NYT)

  1. many editors and senior reporters at nyt (also ft, london; cnn news int’l in hk) earn US$500,000 or more a year.

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