Deferred tax assets (DTAs), credits and deductions that help companies smooth earnings, would lose their value under a lower 28% corporate tax rate, as proposed by President Obama. Some companies plan to write them down and take the hit to earnings, the Wall Street Journal reports.
Companies such as Lockheed Martin and Citigroup have billions sets aside as DTAs. Citigroup, for example, said in a recent earnings conference call that they could charge $4 to $5 billion to earnings as a result of revaluing their $53.3 billion stockpile of DTAs, the Journal said.
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