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Investment strategist joins us now -- -- just heard elephant talk corporate tax rates.
What is your take on -- whole thing would raising taxes the way a lot of Democrats would like to do on companies he had gotten -- death knell for the markets.
I Dennis I think you would be worrisome for the markets -- mean the fact the matter is that the United States today already possesses one of the highest corporate tax rates in the industrialized world.
In addition -- that's no secret that over a trillion dollars.
In corporate cash is basically locked in overseas markets because there's no amnesty to bring those profits back the united states -- that being taxed at such.
An egregious rate and lastly of course any increase in corporate tax rates would put pressure on margins and then profits and as a consequences.
Share prices would have to reflect that -- so.
I don't think that this would be necessarily a market friendly event if it in fact -- came to legislation.
So so above the share prices go down because taxes on companies have gone up.
Is that almost inflationary don't companies just take whatever higher -- taxes they're paying in -- that right into higher prices.
We'll certainly try you know obviously with the overhang of slowing global growth they may not be able to pass those that price increases along so the either eat the price increases and as a consequence -- margins and profits which again.
Is it deterrent to stock prices or conversely they pass along your right to pig in the python ultimately services to the consumer.
Which is inflation.
Now do companies fight back enough against the rhetoric comes out of Washington when they say let's raise corporate taxes as if people don't have to pay when corporate taxes -- Well I certainly hope that between lobbyists and the different institutes that CEOs of large companies -- America sit on.
All helping to provide advice counsel to president -- -- administration with regard to what can help to be conducive to business friendly practices.
It's getting enough -- time.
And you know we can only hope that they're doing their effort which I'm sure they are -- -- -- shareholders to try to convey to the administration that this is a business unfriendly.
Perspective regulation in in a global economy in which US companies have to compete against companies.
In Europe in China and South America and -- parts in between.
What the last thing we need is more friction.
All right thank you very much for being -- market JD.
You're welcome them.
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