J&J CEO Gorsky Says U.S. Tax Reform Is Essential

The video discusses Johnson & Johnson's capital allocation strategy, emphasizing the importance of tax reform for global competitiveness. It highlights the company's focus on dividends, research and development, and strategic acquisitions. The impact of tax rates on investment decisions and potential competitive disadvantages due to tax disparities are also explored.

Why is tax reform considered critical for global competitiveness?

• It ensures companies can pay higher dividends.

• It helps companies choose better locations for their headquarters.

• It allows companies to avoid paying any taxes.

• It guarantees a fixed tax rate for all companies.

What is the first priority in Johnson & Johnson's capital allocation strategy?

• Acquisitions

• Buybacks

• Dividends

• Research and development

How much of Johnson & Johnson's innovation is sourced externally?

• 50%

• 75%

• 25%

• 10%

What is a significant concern for Johnson & Johnson regarding tax rates?

• The inability to pay dividends

• The challenge of acquiring technology due to higher tax rates

• The need to increase research and development spending

• The difficulty in hiring new employees

What does Johnson & Johnson aim to achieve with a flexible capital deployment system?

• Lower production costs

• More efficient capital deployment

• Higher employee salaries

• Increased marketing budget