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No, I get that

Posted on: November 9, 2017 at 15:45:25 CT
Mormad MU
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You're claiming that because the corporation will have less on the expense side (taxes), the corporate net income or cash will go up and that somehow, this will drive the market price of the stock. It may free up cash to pay dividends or they may simply plow that money back into the company and not pay dividends. It could be used for acquisitions or equipment or any number of things. Lower expenses can drive stock prices, but not sure there's a direct correlation between lower taxes and stock price.

On the exec side, I said the "spread" gets taxed. The option price is fixed. Anything above the option price at the time of exercise is taxed as ordinary income (non-qualified options) or as AMT preference (incentive stock options). As that spread increases, more personal tax is owed.
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Stock options and tax reform - Knucklehead MU - 11/9 14:45:43
     First the executives get taxed personally - Mormad MU - 11/9 15:33:30
          You are confusing executives personal tax with corporate - Knucklehead MU - 11/9 15:37:36
               No, I get that - Mormad MU - 11/9 15:45:25
                    He's telling us that all tax reduction will get stuffed into - 90Tiger MU - 11/9 15:59:59
                         Executive pockets are most likely - Mormad MU - 11/9 16:06:37
                              there will be perverse reactions if they go up or they go - 90Tiger MU - 11/9 16:09:56
                    Companies will not invest if they don't think investment wil - Knucklehead MU - 11/9 15:53:55
                         But here's the other side of that - Mormad MU - 11/9 16:03:30
                              yup... a "one-time" bump, as it were (nm) - 90Tiger MU - 11/9 16:06:22
          If you give them everything they want, cash dries up - Knucklehead MU - 11/9 15:41:03
     why do corporate tax cuts automatically imply increased - 90Tiger MU - 11/9 15:14:27
     oh, yawn - FootballRefugee MU - 11/9 14:58:45
          I have owned stock for 30 years - Knucklehead MU - 11/9 15:06:25
               and none of that validates your premise that lower corporate - 90Tiger MU - 11/9 15:15:35
                    Disagree but you are entitled to your opinion - Knucklehead MU - 11/9 15:33:33
                         so if corporate taxes go up or down, all companies benefit - 90Tiger MU - 11/9 15:58:10
     Let's ban corporations--will that do it? - mu7176grad MU - 11/9 14:53:20




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