For those of you who have been invested in GE for years, mostly because of its generous dividend, the times have changed. No longer will GE be providing a 4 to 5% return on your stock holdings. No, it now will be closer to a 2% dividend rate. Which is among the several reasons the stock price has tanked recently.
Do you remember the controversy a few years ago when certain individuals tried to claim that it was their brilliance that made their companies great? “You didn’t build that” was the catch phrase. Because most of us know that to be successful, we need viable infrastructure (which means government investment) and dedicated employees- under the guidance of competent (hopefully- even inspired) management.
I’m sure you’ve heard that the Senate version of the (creatively named) Tax Cuts and Jobs Act is now going to attack PPACA (Patient Protection and Affordable Care Act), affectionately (sic) known as Obamacare. But, if you don’t truly understand the intracacies of the bill, it will be difficult to discern how NOT collecting the tax penalty on those who don’t enroll in a health care plan can be used to reduce the deficit incurred by the behemoth of a bill. (Sorry for all those negatives- but that’s the true concept.)
So, what does the Senate version of this bill (HR-1) do? By and large, the Senate bill matches HR-1. But, there are some significant differences. It’s not clear which house will prevail in their interpretation of the various changes (or that the Senate version passes at all). But, again, tax planning is critical- we need to know what may happen. We need to discern what changes this Senate version- if it passes- will have in conference, when the House and Senate work out the differences in their versions.