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UPS PROJECTED PROFIT INCREASE DUE TO NEW TAX PLAN
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<blockquote data-quote="Mugarolla" data-source="post: 3316168" data-attributes="member: 8481"><p>Don't be sorry. I have always said that I never have an issue with agreeing to disagree with someone.</p><p></p><p></p><p></p><p>Yes, but hundreds of millions, not billions.</p><p></p><p></p><p></p><p>They know they are not. They don't care what I tell you.</p><p></p><p>Do you want to pretend that they are going to get billions and then we strike to get some of this non-existent money?</p><p></p><p></p><p></p><p>UPS cannot hide from the investors, or us, what they will gain from the new tax law.</p><p></p><p>It is simple math. Run the numbers. I'm sure Hoffa's negotiating team have already run them.</p><p></p><p>But, it is millions, not billions.</p><p></p><p></p><p></p><p>Yes.</p><p></p><p>I don't expect everyone, or fault anyone, for not fully understanding tax law and accounting. It is not for everyone.</p><p></p><p>Again, FedEx will get almost all of its windfall from its <em><strong>deferred tax liabilities</strong></em>.</p><p></p><p><a href="https://www.washingtonpost.com/business/fedex-good-news-gets-even-better-with-big-league-tax-cut-gadfly/2017/12/19/2c0c64a8-e519-11e7-927a-e72eac1e73b6_story.html?utm_term=.6febebc1bb7e" target="_blank">Analysis | FedEx Good News Gets Even Better With Big-League Tax Cut: Gadfly</a></p><p></p><p>Quoted from the article....</p><p></p><p><em>That FedEx of all companies would start running the numbers before the tax bill has even become law isn’t surprising. CEO Fred S is a major fundraiser for Republicans and earlier this year was pitching his own version of tax reform. <strong>The biggest reason for the 2018 boost is the revaluation of net deferred tax liabilities, according to the company.</strong> </em></p><p></p><p>UPS has no deferred tax liabilities, so they will not see this boost that FedEx gets.</p><p></p><p>UPS actually has tax deferred assets, and this hurts them. It will hurt a lot of companies, not just UPS. Any company with deferred tax assets. Read on.</p><p></p><p><a href="https://www.bloomberg.com/view/articles/2017-12-27/tax-bill-will-deliver-a-corporate-earnings-gusher" target="_blank">Tax Bill Will Deliver a Corporate Earnings Gusher</a></p><p></p><p><em>Citigroup Inc., which has by far the biggest pile of deferred U.S. tax assets, at $43 billion, <a href="https://www.bloomberg.com/news/articles/2017-12-06/citigroup-cfo-sees-20-billion-charge-if-senate-tax-bill-enacted" target="_blank">has estimated</a> that it will have to take a $20 billion earnings charge. Fannie Mae and Freddie Mac, which normally hand all their earnings over to the Treasury Department, have <a href="https://www.bostonglobe.com/business/2017/12/21/fannie-freddie-mac-cut-deal-with-treasury-cover-any-losses-tied-tax-overhaul/v3J4dS7YMfxhAwAYi7hK4N/story.html" target="_blank">cut a deal to retain $3 billion each</a> in order to cover the tax-asset-related losses they expect to face. Other big losers, according to a <a href="https://www.marketwatch.com/story/these-companies-will-take-a-huge-profit-hit-from-lower-tax-rates-2017-12-14" target="_blank">handy roundup assembled last week by MarketWatch's Francine McKenna</a>, include General Motors Co., American International Group Inc., Bank of America Corp. and Ford Motor Co.</em></p><p></p><p>Unlike UPS, FedEx has huge deferred tax liabilities.</p><p></p><p><em>But most big corporations don't have giant piles of deferred tax assets. They're far more likely to have giant piles of deferred tax liabilities -- which means that the new tax law will, along with cutting their taxes going forward, deliver a big one-time boost to 2017 earnings as the lower corporate tax rate shrinks the value of those liabilities. Of the 200 largest U.S. corporations, ranked by market cap, only five have net deferred tax assets of more than $5 billion. Twenty-eight have net deferred tax liabilities bigger than that. </em></p><p></p><p>UPS will only see a boost from the reduced Corporate Tax Rate.</p><p></p><p>Again, hundreds of millions, not billions.</p><p></p><p></p><p></p><p>You think that making an additional $1.5B, that Fred S would be thanking Trump. I cannot answer whether he did or not.</p><p></p><p>UPS is getting an extra $650M, and they thanked him.</p><p></p><p>Go figure.</p></blockquote><p></p>
[QUOTE="Mugarolla, post: 3316168, member: 8481"] Don't be sorry. I have always said that I never have an issue with agreeing to disagree with someone. Yes, but hundreds of millions, not billions. They know they are not. They don't care what I tell you. Do you want to pretend that they are going to get billions and then we strike to get some of this non-existent money? UPS cannot hide from the investors, or us, what they will gain from the new tax law. It is simple math. Run the numbers. I'm sure Hoffa's negotiating team have already run them. But, it is millions, not billions. Yes. I don't expect everyone, or fault anyone, for not fully understanding tax law and accounting. It is not for everyone. Again, FedEx will get almost all of its windfall from its [I][B]deferred tax liabilities[/B][/I]. [URL='https://www.washingtonpost.com/business/fedex-good-news-gets-even-better-with-big-league-tax-cut-gadfly/2017/12/19/2c0c64a8-e519-11e7-927a-e72eac1e73b6_story.html?utm_term=.6febebc1bb7e']Analysis | FedEx Good News Gets Even Better With Big-League Tax Cut: Gadfly[/URL] Quoted from the article.... [I]That FedEx of all companies would start running the numbers before the tax bill has even become law isn’t surprising. CEO Fred S is a major fundraiser for Republicans and earlier this year was pitching his own version of tax reform. [B]The biggest reason for the 2018 boost is the revaluation of net deferred tax liabilities, according to the company.[/B] [/I] UPS has no deferred tax liabilities, so they will not see this boost that FedEx gets. UPS actually has tax deferred assets, and this hurts them. It will hurt a lot of companies, not just UPS. Any company with deferred tax assets. Read on. [URL='https://www.bloomberg.com/view/articles/2017-12-27/tax-bill-will-deliver-a-corporate-earnings-gusher']Tax Bill Will Deliver a Corporate Earnings Gusher[/URL] [I]Citigroup Inc., which has by far the biggest pile of deferred U.S. tax assets, at $43 billion, [URL='https://www.bloomberg.com/news/articles/2017-12-06/citigroup-cfo-sees-20-billion-charge-if-senate-tax-bill-enacted']has estimated[/URL] that it will have to take a $20 billion earnings charge. Fannie Mae and Freddie Mac, which normally hand all their earnings over to the Treasury Department, have [URL='https://www.bostonglobe.com/business/2017/12/21/fannie-freddie-mac-cut-deal-with-treasury-cover-any-losses-tied-tax-overhaul/v3J4dS7YMfxhAwAYi7hK4N/story.html']cut a deal to retain $3 billion each[/URL] in order to cover the tax-asset-related losses they expect to face. Other big losers, according to a [URL='https://www.marketwatch.com/story/these-companies-will-take-a-huge-profit-hit-from-lower-tax-rates-2017-12-14']handy roundup assembled last week by MarketWatch's Francine McKenna[/URL], include General Motors Co., American International Group Inc., Bank of America Corp. and Ford Motor Co.[/I] Unlike UPS, FedEx has huge deferred tax liabilities. [I]But most big corporations don't have giant piles of deferred tax assets. They're far more likely to have giant piles of deferred tax liabilities -- which means that the new tax law will, along with cutting their taxes going forward, deliver a big one-time boost to 2017 earnings as the lower corporate tax rate shrinks the value of those liabilities. Of the 200 largest U.S. corporations, ranked by market cap, only five have net deferred tax assets of more than $5 billion. Twenty-eight have net deferred tax liabilities bigger than that. [/I] UPS will only see a boost from the reduced Corporate Tax Rate. Again, hundreds of millions, not billions. You think that making an additional $1.5B, that Fred S would be thanking Trump. I cannot answer whether he did or not. UPS is getting an extra $650M, and they thanked him. Go figure. [/QUOTE]
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