FT News Briefing The $250bn in corporate taxes riding on US election
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Nov 4, 2024 Join Stephen Foley, FT's U.S. accounting editor with deep insights into corporate financial strategies, and Amanda Chu, energy analyst specializing in clean hydrogen. They discuss the staggering $250 billion in corporate taxes at stake due to the upcoming U.S. election and the contrasting futures facing major corporations. The conversation pivots to the clean hydrogen industry, grappling with stalled projects and collapsing share prices, underlining the significant investment challenges ahead.
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$250 Billion Tax Question
- The 2024 US election has significant tax implications for corporations, with a potential $250 billion difference between Trump and Harris's policies.
- This uncertainty impacts investment decisions, as businesses await clarity on the White House and Congress's composition.
Trump vs. Harris Tax Plans
- Trump proposes slashing corporate tax rates to 15%, while Harris aims to increase them to 28%.
- Goldman Sachs estimates a $250 billion annual difference between these two policies.
TCJA's Murky Impact
- The impact of the 2017 Tax Cuts and Jobs Act (TCJA) on business investment remains debated among academics.
- While a surge in share buybacks is evident, the long-term effects on investment are less clear due to other economic factors.