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Goldman: Sirius, T-Mobile, Sprint Among Tech Stocks to Thrive From Trump Tax Cuts

Goldman: Sirius, T-Mobile, Sprint Among Tech Stocks to Thrive From Trump Tax Cuts

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By    |   Tuesday, 14 February 2017 11:40 AM

 

Goldman Sachs’ technology research team predicted that Sirius, T-Mobile and Sprint are among nearly a dozen companies that will benefit the most from President Donald Trump’s 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," CNBC reported.

Former Goldman Sachs Group Inc. president Gary Cohn is leading the effort to craft Trump’s plan to overhaul taxes that will be released within weeks, a White House official told Bloomberg.

Cohn, 56, stepped down as Goldman’s president and chief operating officer in December after agreeing to lead Trump’s National Economic Council, an influential panel that helps coordinate and develop the president’s economic program, Bloomberg reported. He was long seen as the heir apparent to Chief Executive Officer Lloyd Blankfein.

Cohn said last week that he has been meeting with members of Congress and working on two key goals: cutting corporate income taxes and individual income taxes. He emphasized during a Feb. 3 interview with Fox Business News that he has been focused on tax cuts for low earners. “We’re not spending a lot of time with the high earners,” Cohn said during that interview.

Cohn also said during an interview on CNBC last week that all options for corporate tax reform are being considered, including the plan favored by House Speaker Paul Ryan that would cut the corporate tax rate to 20 percent and tax U.S. companies on their domestic income and imports, while exempting their exports and offshore income. That so-called “border-adjusted” plan has run into widespread opposition from retailers, oil refiners and other industries. Major exporters, including companies like General Electric Co., have expressed support.

While Trump's promised corporate-tax rate cut might help tech companies, another one of the president's executive orders might hurt them.  
 
More than 100 companies, including most of high-tech's biggest names, joined a legal brief opposing Trump's temporary travel ban, arguing that it would give companies strong incentives to move jobs outside the United States, Reuters reported.
 
The companies - including Apple Inc., Google Inc. and Microsoft Corp. - banded together last week to file a "friend-of-the-court" brief with the 9th U.S. Circuit Court of Appeals in San Francisco.
 
They argued that the executive order temporarily banning citizens of seven Muslim-majority countries and all refugees "inflicts significant harm on American business."
 
Elon Musk's Tesla Inc. and SpaceX were among other companies signing onto the brief on Monday, raising the number of signatories to 127.
 
Musk is among the few tech executives on Trump's business advisory council. He has been forced to defend his participation in recent days, particularly since Uber Technologies Inc.'s chief executive, Travis Kalanick, quit the group following the travel ban.
 
The new Republican president's Jan. 27 executive order sparked protests and chaos at U.S. and overseas airports in the weekend that followed. Trump has defended the ban as necessary to ensure tougher vetting of people coming into the United States and better protect the country from the threat of terror attacks.
 
(Newsmax wires services the Associated Press, Bloomberg and Reuters contributed to this report). 
 
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Goldman Sachs’ technology research team predicted that Sirius, T-Mobile and Sprint are among nearly a dozen companies that will benefit the most from President Donald Trump’s potential corporate-tax rate reduction.
Goldman, Trump, tech, tax cuts
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2017-40-14
Tuesday, 14 February 2017 11:40 AM
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