In: Accounting
What is a major corporate cost decision that has been discussed in the media in the past 6-12 months?
The major corporate cost decision that has been discussed in the media in the past 6-12 months are as follows.
Federal Reserve cuts interest rate or the third time in a year.
Due to trade war and slowing global growth continue to pose risks to the United States economy the Fed cuts interest rates. The trade war between US and China and the ongoing risk of virus attack they Fed is forced to cut the rate. The rates has been fixed to a range of 1.5 to 1.75
Corporate tax has been slashed from 35% to 21%. It will be a great relief for the small and medium business. It is expected that the GDP will increase by 3%. Major corporations has given an option to buy companies share at sometimes in future. This is a golden opportunity for tax avoidance .Industry specific tax benefits.Tax subsidies has been given for specific industries viz research (very broadly defined); drilling for oil and gas; providing alternatives to oil and gas; ethanol production; maintaining railroad tracks; building NASCAR race tracks;