Disney Corporate Tax Rate

[DE_DISNEY]

Disney pays one of the highest corporate income tax rates in the Dow Jones Index. In FY17, Disney paid $4.4 billion in taxes and in FY16 $5.1 billion in taxes (source: https://ditm-twdc-us.storage.googleapis.com/q4-fy17-earnings.pdf). The effective tax rate was over 30% in both years. Disney would benefit if the corporate income tax rate is reduced to 20% which would benefit Disney shareholders (higher earnings, dividends and share buybacks) and employees (higher wages and salaries).

 

[seascape]

It would free up over 1.4 billion dollars a year for capital expenditures, dividends, stick buy backs and raises. Would you rather have Washington have this money or for the above uses?

 

[DE_DISNEY]

I agree with using the money for park investments, employee raises and share buybacks. The mouse should keep more of its cheese.

 

[No Name]

How would that benefit employees?

 

[DE_DISNEY]

How would that benefit employees?

One of the benefits of lower corporate taxes would be employee salary and wage increases.