Got it
Still taxing money twice is not very interesting concept. Seems like punishment for foreigners living in US.
The extra tax is deductible from income tax.
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Well. For sure tariffs will come.
+10% are already in place and they might apply another 5-10% to most countries
Big economies might apply some counter tariffs and call it a day
Smaller ones should just keep going and let American consumers pay the tariffs. Itâs not that those jobs are going to move away to US anyways
Not sure where CH will fit because if Pharma price control comes into play, there wouldnât be any investments for Swiss Pharma to make in US and maybe no deal in the end.
Where did you see this?
I couldnât find this written anywhere
All I see is that proposal is to collect 5% from remittances
You should check the proposal, not the media reports.
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Okay I have an investment related question
Letâs say US companies continue to be great with innovation and cutting edge technologies. But at same time, US govt cannot manage their debt & either default or take drastic taxation measures to reduce debt.
What would be the impact on S&P 500 in that scenario?
- S&P can continue to deliver good returns
- Or S&P would end up suffering too
The question I am asking is how much does Stock market performance depend on national balance sheet.
Probably need to break this down to phases -
- while the party is still going, further fueled by government overspending
- Growing recognition the party canât go on (e.g., sovereign downgrades)
- Politicians and central bank grudgingly administer bitter medicine (spending cuts, rate- and tax hikes), everyone in hangover
Net impact may be positive in the first phase. After that, rate hikes and confidence crises would make borrowing expensive for companies, bad for stocks. So would be tax hikes, especially on corporations, unless that effect is outweighted by gain in confidence.
Might be murky in practice- perhaps best to run a few crises (Greek euro, Liz Truss premiership, Argentina,âŠ) through AI?
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I think itâs fair to assume that in a US sovereign debt crisis thereâs be a global recession and all stock markets would suffer, earnings forecasts would go down and stock prices would follow, regardless of the innovation, in my opinion, in the short term (which will feel long!).
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I was thinking about it. But if there is a debt crisis would rates keep going up? Or there comes a point where lenders have no option but to restructure the debt or face a default.
You donât have just rates in the equation, dollar would likely lose a lot of value as well.
FWIW as other said I think a US debt crisis would have global impact, US liquidity (dollar, US debt) is what is greasing the wheels of the worldâs financial markets.
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(Source)
What if you panic sold right when things seemed the bleakest right before that crazy 10% up day in early April and then panic bought back in the next day:
(Source)
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That is an excellent chart!
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Potentially slightly dippy day tomorrow.
First it was foreign governments, then it was lawyers , then it was universities, then it was judges who were told what they should do and what they should not do. Now itâs time for corporations.
After Apple was told to stop making iPhones in India and make them in US instead. Seems like now Walmart stock investors would be feeling Yippy.
âWalmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,â Trump posted. âWalmart made BILLIONS OF DOLLARS last year, far more than expected. Between Walmart and China they should, as is said, âEAT THE TARIFFS,â and not charge valued customers ANYTHING. Iâll be watching, and so will your customers!!!â
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Continued:
⊠Trumpâs comments echoed Commerce Secretary Howard Lutnickâs comments Sunday on CNNâs âState of the Unionâ that âbusinesses and the countries primarily eat the tariff.â
Nothing as promising as elements of a centrally planned economy, is there?
Treasury Market : Administration 1:0
CEO class : Administration (playing now)
Would be easier to create a tariff refund system (Trump subsidy = tariff paid) rather than telling retailers whose margins are anyways not enough to eat 30% tariffs.
The tariff revenue is already committed towards upcoming tax cuts for those deemed deserving them most.
Walmartâs profit margin in 2024 was about 2.6%. Of course can they absorb the tariffs themselves ⊠
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I believe the message is that âaccept a loss or elseâŠ.â
âŠheyâŠthatâs a nice business you got thereâŠwould be a terrible shame is something were to happen to itâŠ
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