I’ve spent some time thinking about Trump’s proposed tax cuts for corporations and I’m curious as to who will ultimately benefit from them. I should start by saying that I believe the beneficiaries of the tax cuts will vary across companies and industries. Here are my thoughts.
For the most part, I don’t think lower corporate tax rates will end up in the pockets of the owners of companies, except in certain circumstances. The exception, which I will touch on later, will be businesses that have pricing power.