President Donald Trump says he will announce details of his business tax cut plan in coming weeks. In response, Goldman Sachs' technology research team shared a list of companies that will benefit the most from a potential corporate tax rate reduction.
"The Trump administration has signaled a set of wide ranging changes across taxes, trade and regulations. While much is still unclear, in this report we take a preliminary look across our US TMT [technology, media and telecom] coverage to explore the potential impact of current tax and policy proposals," analyst Heather Bellini wrote in a note to clients entitled "Transition to Trump: Implications for TMT" Monday.
The analyst cited how the Republican-led House plan lowers the corporate tax rate to 20 percent from 35 percent, while Trump proposes a reduction to 15 percent. Goldman economists project "the most likely scenario" is a 25 percent tax rate.
To find the best technology stocks under a lower tax rate environment, Goldman searched for companies with market caps over $10 billion and with projected 2017 effective tax rates above 30 percent, according to the firm's analysts.
