Democrats have proposed raising the corporate tax rate to help finance their climate and health care package, and if the tax remains part of the deal, companies — especially larger ones — could take a hit.
The initial proposal included a plan to raise revenue through a 15% corporate tax floor. Che can be modifiedalthough higher corporate taxes are likely to remain a priority.
If the tax passes, larger companies will bear the brunt. The tax would apply to those with an average of $1 billion in adjusted pretax profits over the past three years.
The strategists at
checked for companies that both fit that bill and recently paid less than 15% cash taxes and found 102. Of those, here are a few that are particularly vulnerable.
Utility American Water Works Company (ticker: AWK ) recently enjoyed a cash tax rate of 0.1% and has produced pretax earnings of an average of $1.1 billion over the past three years. His peer,
(AEE), there is a 0.1% cash tax rate and before tax also a profit of $1.1 billion.
Advanced Micro Devices (AMD) has a tax rate of 1% and average pretax earnings of $1.8 billion.
( NVDA ) has a tax rate of 4.7% and average pretax earnings of $4.8 billion.
( AVG ) has a tax rate of 6.8% and pretax earnings of $6.8 billion.
Apollo Global Management
(APO) has a tax rate of 5.1% and pretax earnings of $2.3 billion.
(F) has a tax rate of 4.3% and pretax earnings of $4.93 billion.
( TSLA ) has a tax rate of 5.3% and pretax earnings of $2.3 billion.
(AMZN) has a 9% tax rate and pretax earnings of $25.4 billion.
( CRM ) has a tax rate of 3.1% and pretax earnings of $1.6 billion.
These companies are candidates to receive reduced profits from higher taxes.