the Kiplinger letter

Oct 3rd, 2014
Steve1995
Category:
Economics
Price: $5 USD

Question description

The Kiplinger Letter, which is on tax matters, had a very interesting section.  It states that S&P companies are hoarding $1.6 trillion to expand or replace equipment, factories or offices. There is a provision in the tax code that says companies can retain earnings (under the liabilities section on their balance sheets), if they have a valid business reason.  It sounds to me that these companies are holding their cash, instead of distributing dividends to shareholders, in a "wait and see" mode  - to check the direction of interest rates.  The IRS will tax excess earnings at 39.6%.  Where is the IRS in all this?  It comes after individuals and small businesses.  It seems that it is time for them to start checking these "business reasons" more closely.

Why don't you check your company's balance sheet and see what you find?

75-150 words

Tutor Answer

(Top Tutor) Daniel C.
(997)
School: UT Austin
PREMIUM TUTOR

Studypool has helped 1,244,100 students

8 Reviews


Summary
Quality
Communication
On Time
Value
pmallory
Dec 11th, 2016
" Totally impressed with results!! :-) "
mixedballz
Dec 2nd, 2016
" excellent work as always thanks for the help "
Five Star Tutor
Nov 26th, 2016
" Outstanding Job!!!! "
kiln82
Nov 18th, 2016
" awesome work thanks "
darnay
Nov 9th, 2016
" The best tutor out there!!!! "
likeplum4
Nov 5th, 2016
" Excellent work as usual "
kpcutie
Oct 13th, 2016
" Excellent job "
Joemoe
Oct 4th, 2016
" <3 it, thanks for saving me time. "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1829 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors