Tax Reform and its implications for IDCC and its shareholders
1. I am not an accountant. BUT I have done my own taxes for the last 25 years.
2. Simplification of any government requirements is to be applauded. However, I am confused about how a small business owner separates business expenses from personal ones without a lot of paperwork.
3. By all accounts, state income taxes and real estate property taxes will not be deductible on federal tax returns. I can just see a lot of lobbyists rubbing their hands in anticipation of "yuge" earnings. I don't see the Peoples' Republics of California and New York going down without a fight.
4. IDCC's overall tax rate has been pretty consistent at about the 35% mark. They did discover some investment tax credits a couple of years ago and that produced some windfall tax savings.
5. IDCC will definitely benefit from tax reform, much more so than companies like Apple and Big Pharma that learnt over the years how to game the system.
6. Since IDCC will benefit, so will its shareholders.
7. Actually, shareholders will benefit in two ways. Higher dividends (and hopefully higher stock price), and lower taxes. Mind you, without seeing the tax brackets, actual taxes due on dividends are a guess. But the Obamacare tax on investment income goes away for a certain saving.
8. The one time tax rate for bringing home trillions of dollars held overseas is such a no-brainer that it is mind-boggling that Obama and Bush did not act on it. Divided government or not, it makes no sense to leave that kind of capital gathering dust some place.
By the way, this post (like many others today) is partially OT. Hopefully it receives the same treatment as all the earlier posts!
jmo
LA
