While he retains a strong voter base in the conservative heartlands of North America, the Presidency of Donald Trump continues to be defined by an excess of smoke and a seemingly endless hallway of mirrors. Nothing embodies this better than the former real estate mogul's comprehensive tax reform plans, which has been presented as legislation for low and middle-income earners in the US.
While Trump's estimates suggest that the typical American family will receive a tax cut of $1,182, however, it will also offer huge breaks to wealthier citizens and the largest corporations in the US.
In fact, Trump's decision to slash the base corporate tax rate from 35% to just 21% represents the focal point of his proposed reforms, while it has already created considerable opportunities for entrepreneurs and investors alike. Here's how.
How Does Trump's Tax Reform Work and Who are the Initial Winners?
As well as slashing the corporate tax rate in the US by 14%, President Trump has provided sweeping tax reductions for special interests while also lowering the top federal tax rate from 39.6% to 37%.
Interestingly, the commercial tax cuts are permanent and will be sustained for the entire duration of the Trump administration and beyond, until the President's successor proposes his own reforms in the future.
While this will benefit all businesses to some degree or another in the US, those currently paying an inflated level of corporation tax will be the biggest winners. So too will corporations that hold considerable amounts in overseas cash and investments, with both of these tax breaks offering natural advantages to some of the largest and highest earning companies in the world.
Take Apple, for example, who at the time of writing hold an estimated 94% of its $269 billion cash reserves in overseas balances. As a direct result of Trump's tax reform, the CFRA estimates that the technology brand will be ultimately repatriate as much as $200 billion of this capital back into the US, while using the proceeds to buy back stock and boost its bottom line even further.
The same principle can also be applied to companies such as Amazon and Facebook, while JP Morgan analyst Sterling Auty has stated that US-based software stocks will also emerge as the largest beneficiaries of the tax reform. This includes prominent brands such as Intuit and Aspen Technology, who tend to have the majority of their revenue domiciled in the US and boast exceptionally high profit margins.
How will this Influence Investors?
Traders may be looking to take advantage of those companies that have benefited from the reforms, of course, and fortunately Trump's legislation has provided clear and obvious benefits for corporations that meet certain criteria relating to their business model and infrastructure.
More specifically, there should be a clear focus on companies that boast significant cash holding overseas, as well as those that have naturally high profit margins.
This includes a large majority of businesses in the vast and diverse technology sector, with brands such as Apple able to leverage their infrastructure, international reach and inflated margins to benefit significantly from Trump's multi-layered tax reform.
50 of the world’s leading triathletes, including 25 Olympians, will compete for round two of the Super League Triathlon crown on 23rd and 24th September 2017, in Jersey, UK. They will be joined by teams of corporates, including Santander Group, UBS AG, First Names Group, Ravenscroft Group, and others looking to test themselves at the same event as the best triathletes in the world.
The men’s line-up will include Jonny Brownlee from the UK, rivals Javier Gomez Noya and Mario Mola Diaz from Spain, and Richard Murray from South Africa, as well as 20 other leading male triathletes. The women’s racing will see leading Brits including Jodie Stimpson, Lucy Hall and Non Stanford taking on Olympian Nicola Spirig from Switzerland, Olympic bronze medallist Erin Densham from Australia and the current American World Triathlon Series leader Katie Zafares, among many other leading female triathletes.
Expanding upon the Championship format, Super League Jersey will also feature a corporate triathlon event. Companies will be able to enter two Corporate or VIP teams to race in the ‘Corporate Mix’ format, on the same course as the professional athletes. The ‘Corporate Mix’ will allow companies to compete against each other, with the scores being a total of their teams’ sponsored pro athletes and their own team relays.
Super League Triathlon co-founder and Managing Director, Michael Dhulst, commented: “‘Corporate Mix’ partners will gain access to the world’s greatest triathletes, including Jonny Brownlee, and will enjoy unique corporate hospitality opportunities for their clients. Corporates will be able to race in their own teams with two of the world’s best triathletes, with corporate branding on the front of the race uniforms.”
The inaugural event in Australia gained world-wide exposure, reaching 388 million households on television, as well as nearly ten million video views and impressions on social media. As a result of this, in excess of five million pounds’ worth of media value was delivered to sponsors across live, packaged and digital content.
Super League Triathlon’s ground-breaking television and digital coverage will be even better at Super League Jersey, as they partner with leading sport and entertainment agency Lagardère. All racing will be broadcast live with programming distributed across international broadcast partners and digital channels making it easy for fans in any time zone to view programming live or on demand.
The continued attractiveness of Super League Triathlon was again demonstrated recently by the launch coverage of this year’s Jersey event, which reached almost 120 million people last month.
Susan Clark, Head of Marketing at Santander International commented: "Santander International are delighted to be involved with Super League Triathlon and look forward to welcoming everyone to Jersey in September.”
Andy Ruddy, Financial Director at global trust and corporate services provider First Names Group, commented: "It is fantastic that the world’s best triathletes are coming to Jersey to compete in an event of this calibre. First Names Group are thrilled to partner the highest profile event the Island has ever hosted and look forward to giving some of our ‘First Names’ the opportunity to compete in the Super League ‘Corporate Mix’ Cup which will be an incredible experience for all involved."
Haydn Taylor, Managing Director of Ravenscroft Group’s Jersey offices said: “Ravenscroft is a significant sponsor of sport in the Channel Islands and we are proud to support some of the islands’ successful athletes including triathletes Jack Kennedy, Andrea Nightingale and Josh Lewis. We recognise talent, within the wider community and in our own teams, and are committed to nurturing it. The Super League Triathlon is a huge event for Jersey and we look forward to playing a part in showcasing the island to a global audience through the extensive media coverage the weekend will attract.”
Corporate Super League Triathlon partners have the unique opportunity to reward employees, excite partners and attract new business opportunities. Spectator travel packages will also soon be announced via Super League Jersey’s travel partner, Nirvana Europe.
