One of the primary themes that has supposedly been driving the U.S. stock market higher since the outcome of the U.S. presidential election was determined as the notion of corporate tax reform. Under this policy shift that is expected once the new administration has taken office, corporate tax rates are expected to be cut from 35% to 15%. In addition, a corporate repatriation holiday at a special 10% tax rate has also been rumored. With these expected policy changes in mind, it is worthwhile to consider exactly what companies are likely to be most influenced by this policy change along with the potential impact on the broader market.
An estimated $1.4 trillion in overseas profits are believed to potentially benefit most from any future corporate tax holiday legislation. This is a potentially enormous injection of money coming back into the U.S. economy.
But as discussed in a recent article,…
