The Wall Street Journal’s Theo Francis says that while the Republican tax bill signed by President Trump a year ago has produced some obvious effects for U.S. businesses, including a solid boost to earnings and a big jump in share buybacks, there are still plenty of things that corporations are trying to figure out in the wake of the tax law changes. “[T]he new tax landscape is an attractive one for big companies,” Francis writes, “but it still leaves a lot up in the air.”
Here are four lessons Francis cites from the tax overhaul:
1) The tax cuts are being treated as a one-time windfall rather than a fundamental change in the way to do business.
2) Offshore profits may take years to shift back to the U.S.
3) Companies still need more guidance from the government on the new rules governing international operations.
4) Trump’s tariffs could erode gains from the tax law.