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(Chicago)
While investors are starting to doubt the President's ability to push through tax reforms next year, companies are not taking any chances. Many companies are now issuing bonds to raise money to put more towards their pension contributions. The reason why is that the contributions are currently tax deductible, but under a new tax reform package they may not be. International Paper, Valvoline, and Kroger have all sold bonds for this purpose recently. The CFO of International Paper summarized the situation, saying "The math speaks for itself … That is a tax deductible contribution. And in case of any future tax rate changes - and we don't know more than you know - it at least locks in the 35 per cent rates we have today".
FINSUM : This seems to show solid foresight by companies, and any contribution to beleaguered pension pots is a good thing.
- bonds
- credit
- pensions
- taxes
- Trump
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
