Kantor Says for Tax, The Devil Is in the Details

The video discusses the impact of historic tax legislation on public companies, highlighting how tax changes have shifted from a minor to a major strategic consideration. The reduction in corporate taxes by 40% in the US is expected to significantly affect corporate returns, prompting companies to reconsider their investment strategies, employee benefits, and competitive positioning. The discussion also touches on potential mergers and market competitiveness, emphasizing the importance of industry-specific reactions and the role of digital technology in maintaining relevance.

How has the new tax legislation changed the role of taxes in corporate strategy?

• Taxes have become a minor consideration.

• Taxes are irrelevant to corporate strategy.

• Taxes are now a central part of corporate strategy.

• Taxes have always been a central part of strategy.

What are companies likely to consider with the increased returns from reduced taxes?

• Increasing product prices

• Reinvesting in the business

• Expanding into unrelated industries

• Reducing employee benefits

What is a potential outcome of the tax reduction for high tax-paying companies?

• Decreased competitiveness

• Higher tax rates

• Reduced market share

• Increased returns on capital

How might the tax changes affect industry dynamics?

• All industries will react the same way.

• Industries will become less competitive.

• Reactions will vary by industry and company position.

• There will be no change in industry dynamics.

In what way might companies use the tax savings to enhance their market position?

• By ignoring digital technology

• By becoming more relevant in the digital technology world

• By reducing their workforce

• By focusing solely on traditional markets