Trump’s Corporate Tax Rate Cut Will Wreak Havoc With Reported Earnings
I spoke with Professor Tracy Noga, Associate Professor of Accountancy at Bentley University. She confirmed for me that the boost or hit to reported earnings is immediate and that it is at the currently enacted rate. She also told me that she expects that the adjustment will wreak havoc with earnings. What neither one of us can figure out to any satisfaction is how analysts will take this into account. Will they recognize that 2017 earnings reports will be radically distorted by this tax change? Maybe they are all focused on EBITDA and they won’t even notice.
KPMG Haunted By Its Tax Shelter Follies
I don’t have a lot of sympathy for the taxpayers, but I have even less for KPMG. They were, probably still are, one of the most prestigious accounting firms in the world. Finding out that a deal that they recommended had no merit at all – didn’t even make good nonsense – was probably kind of shocking. Regardless, the third circuit ruled that some of the grounds of the lawsuit deserve to be considered.
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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.