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Nvidia has a tax rate of 4.7% and an average pre-tax profit of $4.8 billion. Here is a cryptocurrency mining rig equipped with Nvidia Geforce GPU at the Thailand Crypto Expo 2022.
André Malerba/Bloomberg
Democrats proposed lifting the corporate tax rate to help fund their climate and health care package, and if the tax remains part of the deal, companies — especially larger ones — could take a hit.
The original proposal included a plan to increase revenues through a corporate tax rate of at least 15%. That could be changed, though higher corporate taxes are likely to remain a priority.
If the tax continues, larger companies would bear the burden. The tax would apply to those who made an average of $1 billion in pre-tax adjusted profits over the past three years.
Strategists at
UBS
screened for companies that both fit that bill and have recently paid less than 15% in cash taxes, and found 102. Of these, few are particularly vulnerable.
Utility American Water Works Company (ticker: AWK) recently enjoyed a cash tax rate of 0.1% and has made pre-tax profits averaging $1.1 billion over the past three years. his peer,
America
(AEE), has had a cash tax rate of 0.1% and input tax profit of $1.1 billion, too.
Advanced Micro Devices (AMD) has a tax rate of 1% and average pre-tax profits of $1.8 billion.
Nvidia
(NVDA) has a tax rate of 4.7% and an average pre-tax profit of $4.8 billion.
broadcom
(GDPR) has a tax rate of 6.8% and a pre-tax profit of $6.8 billion.
Apollo Global Management
(APO) has a tax rate of 5.1% and a pre-tax profit of $2.3 billion.
Ford Motor
(F) has a tax rate of 4.3% and a pre-tax profit of $4.93 billion.
Tesla
(TSLA) has a tax rate of 5.3% and a pre-tax profit of $2.3 billion.
Amazon.com
(AMZN) has a 9% tax rate and a pre-tax profit of $25.4 billion.
Sales team
(CRM) has a tax rate of 3.1% and a pre-tax profit of $1.6 billion.
These companies are candidates to see lower income from higher taxes.
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