{"id":9137,"date":"2014-02-05T22:09:04","date_gmt":"2014-02-06T03:09:04","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=9137"},"modified":"2014-02-05T22:09:04","modified_gmt":"2014-02-06T03:09:04","slug":"taxes-and-corporate-profits","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2014\/02\/05\/taxes-and-corporate-profits\/","title":{"rendered":"Taxes and corporate profits"},"content":{"rendered":"<p>A secondary element &mdash; when compared to wages, raw materials and interest rates &mdash; is the impact of a lower effective tax rate [blue line] on US corporate profits (CP\/GDP). Part of the post-GFC fall in the effective corporate tax rate can be attributed to tax losses, incurred during the GFC and used to shield current income. Tax savings are likely to be short-lived, with effective tax rates returning to pre-GFC levels around 24%.<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" width=\"525\" height=\"320\" title=\"Effective Corporate Tax Rate\" alt=\"Effective Corporate Tax Rate\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/corptax.png?resize=525%2C320&#038;ssl=1\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A secondary element &mdash; when compared to wages, raw materials and interest rates &mdash; is the impact of a lower effective tax rate [blue line] on US corporate profits (CP\/GDP). Part of the post-GFC fall in the effective corporate tax rate can be attributed to tax losses, incurred during the GFC and used to shield &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2014\/02\/05\/taxes-and-corporate-profits\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Taxes and corporate profits&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[57,34],"tags":[831,1199],"class_list":["post-9137","post","type-post","status-publish","format-standard","hentry","category-stock-markets","category-us-canada-countries-regions","tag-corporate-profits","tag-effective-corporate-tax-rate"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Taxes and corporate profits - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Taxes and corporate profits - the patient investor\" \/>\n<meta property=\"og:description\" content=\"A secondary element &mdash; when compared to wages, raw materials and interest rates &mdash; is the impact of a lower effective tax rate [blue line] on US corporate profits (CP\/GDP). 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Consideration of some of the key contributing factors will enable us to assess if and when this is likely to occur. Interest Rates Low interest rates are clearly\u2026","rel":"","context":"In &quot;Market Insights&quot;","block_context":{"text":"Market Insights","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/market-insights\/"},"img":{"alt_text":"Corporate Profits and AAA Bond Yields","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/corpprofits-aaayields.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/corpprofits-aaayields.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/corpprofits-aaayields.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":21333,"url":"https:\/\/thepatientinvestor.com\/index.php\/2020\/08\/29\/sp-500-and-stock-market-bubbles\/","url_meta":{"origin":9137,"position":1},"title":"S&#038;P 500: Another stock market bubble?","author":"Colin Twiggs","date":"August 29, 2020","format":false,"excerpt":"We see plenty of charts comparing major indices to GDP. Both the S&P 500 and Wilshire 5000 made new highs relative to GDP, warning that stock pricing is at a new extreme. But comparing indices like these to an economy-wide measure like GDP is inaccurate for two key reasons: Index\u2026","rel":"","context":"In &quot;GDP and Activity&quot;","block_context":{"text":"GDP and Activity","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/gdp-and-activity\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":11979,"url":"https:\/\/thepatientinvestor.com\/index.php\/2015\/06\/25\/are-us-stocks-really-over-valued\/","url_meta":{"origin":9137,"position":2},"title":"Are US stocks really over-valued?","author":"ColinTwiggs","date":"June 25, 2015","format":false,"excerpt":"Stock Market Capitalization Let us start with Warren Buffet's favorite market valuation ratio: stock market capitalization to GDP. I have modified this slightly, replacing GDP with GNP, because the former excludes offshore earnings \u2014 a significant factor for multinationals. The ratio of stock market capitalization to GNP now exceeds the\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"US stock market capitalization to GNP","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-06-25-marketcap-gnp.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-06-25-marketcap-gnp.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-06-25-marketcap-gnp.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":13774,"url":"https:\/\/thepatientinvestor.com\/index.php\/2015\/06\/25\/are-us-stocks-really-over-valued-2\/","url_meta":{"origin":9137,"position":3},"title":"Are US stocks really over-valued?","author":"ColinTwiggs","date":"June 25, 2015","format":false,"excerpt":"Let us start with Warren Buffet's favorite market valuation ratio: stock market capitalization to GDP. I have modified this slightly, replacing GDP with GNP, because the former excludes offshore earnings \u2014 a significant factor for multinationals. The ratio of stock market capitalization to GNP now exceeds the highs of 2005\/2006,\u2026","rel":"","context":"In &quot;Market Insights&quot;","block_context":{"text":"Market Insights","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/market-insights\/"},"img":{"alt_text":"US stock market capitalization to GNP","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-06-25-marketcap-gnp.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-06-25-marketcap-gnp.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-06-25-marketcap-gnp.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":19688,"url":"https:\/\/thepatientinvestor.com\/index.php\/2020\/01\/25\/irrational-exuberance\/","url_meta":{"origin":9137,"position":4},"title":"Irrational Exuberance","author":"Colin Twiggs","date":"January 25, 2020","format":false,"excerpt":"I believe this warrants a separate post: The market is running on more stimulants than a Russian weight-lifter. Unemployment is near record lows but the US Treasury is still running trillion dollar deficits. While the Fed is cutting interest rates. And again expanding its balance sheet. More than twelve years\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":9132,"url":"https:\/\/thepatientinvestor.com\/index.php\/2014\/02\/05\/wages-and-corporate-profits\/","url_meta":{"origin":9137,"position":5},"title":"Wages and corporate profits","author":"ColinTwiggs","date":"February 5, 2014","format":false,"excerpt":"Employee Compensation as a percentage of Net Value Added (by US Corporate Business) has fallen sharply since the GFC, boosting corporate profits. Again we can observe an inverse relationship, with corporate profits spiking when compensation rates fall, and vice versa. A sharp fall in unemployment would send wage rates soaring,\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/"},"img":{"alt_text":"Employee Compensation compared to Net Value Added","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/empcomp-netvalueadded.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/empcomp-netvalueadded.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/empcomp-netvalueadded.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/9137","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=9137"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/9137\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=9137"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=9137"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=9137"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}