In just 16 days, Donald J. Trump will be sworn in as the 45th President of the United States.
The good news is that Trump’s top two priorities could help boost your dividends by as much as 20% in 2017.
So, what should you expect from Trump’s first 90 days in the White House? And how could his moves impact your investments?
Our live briefing will share details – including what to expect from President Trump’s first 90 days in office. Plus, we’ll share our top income trading strategy for the Trump Presidency. Click here to join me – 100% free.
Our research suggests that his current priorities include:
- Repeal Obamacare
- Reduce corporate taxes from 35% to 15%
- 10% tax holiday for repatriating overseas cash
These three big changes could impact decisions in corporate board rooms across the country…and therefore your income investments.
First, Trump plans to kill Obamacare.
Ever since 2010, Republicans have voted 52 times to reverse President Barack Obama’s biggest legislative accomplishment.
One Washington insider tells me that Republicans will likely repeal the tax funding provisions related to Obamacare immediately. This could take place before March, even before a replacement for Obamacare is in place.
There are tons of different taxes associated with Obamacare. One of the biggest taxes is a 3.8% Medicare Tax on investment income over $200k.
Second, Trump plans massive tax reductions.
The biggest expected change is to the corporate tax rate. The U.S. currently has the 3rd highest corporate tax rate in the world at 35%. Only the United Arab Emirates and Puerto Rico have higher taxes.
Trump plans to reduce the corporate income tax rate by 20% – from 35% down to just 15%. That would put the U.S. among developed countries with the lowest corporate tax rates.
Any decrease in corporate taxes would flow directly to the bottom line. American companies could use the extra cash in a variety of ways, including capital investments in their business or hiring more employees.
However, our research indicates that they are most likely to continue rewarding shareholders with large share buybacks and larger dividends. That’s exactly what corporations have been doing with growing profits in recent years. And we have no reason to think that lower taxes would change this approach to capital allocation.
For most execs, stock price performance is a key measure of success. And since many CEOs also have direct ownership in their company – either through stock or options – they have a financial incentive for the stock to do well.
Companies that are shareholder friendly have been among the best performers in the last few years. And that’s why most execs will continue returning cash to their shareholders.
If the corporate tax rate is reduced by one-fifth, there will be some dividend paying stocks that simply pass on ALL of the extra profits to their shareholders. That could result in a 20% dividend increase at select companies.
Third, Trump plans to create a repatriation tax holiday.
Right now, U.S. companies have $2.6 trillion in overseas cash. This cash is outside of the U.S., in offshore tax heavens spanning the world in countries from the Cayman Islands to Ireland.
If Trump works with Congress to create a corporate tax holiday, we’d expect to see up to $1.2 trillion of offshore cash come back into the U.S.
The vast majority of this cash could be returned to shareholders in special dividends.
We’ve holding an urgent briefing to discuss all the details. It’s 100% free to attend this LIVE webinar:
The Donald Trump Dividend Bonanza 2016
Inside this 60-minute event, we’ll share details of Trump’s plans…discuss how it will impact your income and investments…and reveal the single best income trading situation in 2017.