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%.
OR
PayPal Gateway not configured
OR
PayPal Gateway not configured