Sizing Up Trump's Tax Proposal
Bloomberg Businessweek|May 1 - May 7, 2017

Midsize companies stand to benefit more than bigger ones

Lewis Braham
Sizing Up Trump's Tax Proposal

Donald Trump promised companies a “massive” tax cut. Businesses aren’t likely to benefit equally, however.

Small and especially midsize companies stand to gain the most from a straight corporate tax cut, though only if they’re profitable, according to interviews with members of Bloomberg’s Breakaway network, which encompasses 78 high-growth businesses with annual revenue averaging about $450 million.

The Trump administration has proposed reducing the maximum tax rate from 35 percent to 15 percent. House Republicans favor a 20 percent rate; they also want to lower the top rate for so-called pass-through entities, a category that includes limited liability companies and S corporations, from 39.6 percent to 25 percent. More than 90 percent of U.S. businesses—28.3 million—are pass-throughs; most are small to midsize. Under Trump’s plan, the 15 percent rate would also apply to such enterprises. That could benefit his own businesses, which are structured as limited liability companies.

One important caveat: Only profitable enterprises will see any advantage from a cut to the corporate rate—and that’s more likely to be mature companies than startups. Among publicly traded corporations, 82 percent of mid-caps were profitable in 2016, vs. 68 percent of smaller companies, according to FTSE Russell, which compiles various stock indexes.

Denne historien er fra May 1 - May 7, 2017-utgaven av Bloomberg Businessweek.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

Denne historien er fra May 1 - May 7, 2017-utgaven av Bloomberg Businessweek.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

FLERE HISTORIER FRA BLOOMBERG BUSINESSWEEKSe alt
Instagram's Founders Say It's Time for a New Social App
Bloomberg Businessweek US

Instagram's Founders Say It's Time for a New Social App

The rise of AI and the fall of Twitter could create opportunities for upstarts

time-read
4 mins  |
March 13, 2023
Running in Circles
Bloomberg Businessweek US

Running in Circles

A subscription running shoe program aims to fight footwear waste

time-read
3 mins  |
March 20 - 27, 2023
What I Learned Working at a Hawaiien Mega-Resort
Bloomberg Businessweek US

What I Learned Working at a Hawaiien Mega-Resort

Nine wild secrets from the staff at Turtle Bay, who have to manage everyone from haughty honeymooners to go-go-dancing golfers.

time-read
10 mins  |
March 20 - 27, 2023
How Noma Will Blossom In Kyoto
Bloomberg Businessweek US

How Noma Will Blossom In Kyoto

The best restaurant in the world just began its second pop-up in Japan. Here's what's cooking

time-read
3 mins  |
March 20 - 27, 2023
The Last-Mover Problem
Bloomberg Businessweek US

The Last-Mover Problem

A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps

time-read
10+ mins  |
March 20 - 27, 2023
Tick Tock, TikTok
Bloomberg Businessweek US

Tick Tock, TikTok

The US thinks the Chinese-owned social media app is a major national security risk. TikTok is running out of ways to avoid a ban

time-read
10+ mins  |
March 20 - 27, 2023
Cleaner Clothing Dye, Made From Bacteria
Bloomberg Businessweek US

Cleaner Clothing Dye, Made From Bacteria

A UK company produces colors with less water than conventional methods and no toxic chemicals

time-read
3 mins  |
March 20 - 27, 2023
Pumping Heat in Hamburg
Bloomberg Businessweek US

Pumping Heat in Hamburg

The German port city plans to store hot water underground and bring it up to heat homes in the winter

time-read
3 mins  |
March 20 - 27, 2023
Sustainability: Calamari's Climate Edge
Bloomberg Businessweek US

Sustainability: Calamari's Climate Edge

Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment

time-read
4 mins  |
March 20 - 27, 2023
New Money, New Problems
Bloomberg Businessweek US

New Money, New Problems

In Naples, an influx of wealthy is displacing out-of-towners lower-income workers

time-read
4 mins  |
March 20 - 27, 2023