Corporate profits

Corporate profits devour the economy

Here are two things that are true about today’s economy. (1) The Dow Jones Industrial Average is poised to set a new record high as corporate profits hit all-time highs. (2) There are even fewer American workers today than before the start of the Great Recession. The fact that both of these things could be […]

Corporate profits

Corporate profits soar as workers’ incomes decline

“It’s minimal,” said Savita Subramanian, head of US equities and quantitative strategy at Bank of America Merrill Lynch. Overall, the receivership could cut profits for the biggest companies by just over 1%, she said, adding that “the market wants more austerity.” As a percentage of national income, corporate profits were 14.2% in the third quarter […]

Foreign investments

A tax dilemma: foreign investments and your retirement account

Question: Someone told me that every year I pay taxes on dividends from foreign equity funds held in my IRA. If I’m not supposed to pay tax on dividend payments in my IRA, how can that be? Reply: To understand why you can pay taxes on foreign dividends held in your IRA (and your 401 […]