Looks like this thing is progressing thru the sausage grinder; has even picked up some Democrat support.
Looks like at least reserve balances ($2.5T system wide) will be removed from capital requirements; from the summary:
Section 402. Supplementary Leverage Ratio for Custodial Banks.
This section requires the Federal banking agencies to amend the supplementary leverage ratio final rule (SLR) to specify that funds of a custodial bank that are deposited with a central bank will not be taken into account when calculating the SLR, subject to limitations.
Bipartisan bank-relief bill wins approval from key Senate panel https://t.co/ahy6c2HKVs pic.twitter.com/Ep8M9EOlyK— Bloomberg (@business) December 5, 2017
We'll need this if Trump pulls something far out of left-field in order to operate at the "debt ceiling!" starting after this Friday...
10 comments:
$2.5T to "invest" in stock buybacks and overseas tax shelters. Yaa!
Trump is removing the overseas tax shelters (but lowering the rate to 20%.... ie short term pain for long term gain)
Here:
http://markets.businessinsider.com/news/stocks/citi-stock-price-falls-after-warning-the-gop-tax-bill-could-cost-20-billion-2017-12-1010435679
"Citi fell 1.4% Wednesday after CFO John Gerspach warned at an investor conference that the GOP's Senate tax bill could cost the bank $20 billion. The hit would stem from Citi writing down deferred tax assets, "
I know... I know.... "neo-liberal conspiracy!!!"...
Here:
Tax Accounting: Apple has its Ireland Subsidiary buy phones from a China USD zombie slave trapeze net sub-human factory for $15, Ireland Subsidiary sells it to Apple US for $700 and makes $685 tax free, then Apple US retails it in US for $725 and grosses $25 minus retailing expenses taxable at 35%...
So the US import level is $700 and adds greatly to the trade deficit meanwhile the actual foreign USD zombies in China running the slave factories for rations of dog brain soup only really got $15 out of the deal... Apple makes $685 tax free but it is in an Ireland subsidiary not directly available to shareholders...
so Trump is now going after the $685 and is going to tax that at 20% so apple may consider building it here as long as they can get it built in the US for less that the current $15 they pay the slave factory USD zombies plus the tax at 20%...
This is Trump's plan to bring the jobs back here... ie tax what is now tax free and then it should be more financially attractive to build the ones sold here in the US right here...
Both trade deficit and fiscal deficit are going to come down...
Oops spoke too soon they moved it over to Channel Islands from Ireland:
https://www.theverge.com/2017/11/6/16614158/apple-jersey-offshore-tax-shelter-ireland
So just substitute "Jersey" for "Ireland" above...
Apple's major supplier is Foxconn , which is a Taiwanese firm with facilities around the world, including none in China.
https://www.macworld.co.uk/news/mac/160-mac-mini-server-rack-3416223/
“Made in China. The reason Apple sticks "Made in China" on its devices is because the majority of the parts tend to be sourced from China,”
And Taiwan is China they speak Mandarin there and have all the history... They refer to themselves as ‘Republic of China’
That’s not the point anyway the point is that how much of the current trade deficit (and hence “the deficit!”) is due to tax avoidance schemes being used by US headquartered multinationals... and what effect will Trumps tax changes have on those current systemic accounting results....
I know... I know ... “neo-liberal conspiracy!”....
By the time this is done the rates will be cut and the shelters will remain in place. Plus they'll cut some social programs and legislate that masturbation is murder.
That’s not the point anyway the point is that how much of the current trade deficit (and hence “the deficit!”) is due to tax avoidance schemes being used by US headquartered multinationals... and what effect will Trumps tax changes have on those current systemic accounting results....
I haven't seen the figures that establish this, but I is entirely plausible and I suspect it is the case. Anyone seen numbers on it?
No .... as most outside of orthodoxy think “deficit too small!”....
So this Trump policy would reduce “the deficit!” and they think he has it going the wrong way....
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