There's a lot of talk right now about President Donald Trump's proposal to lower the top corporate income tax rate from 35% down to 15%.
This would be a boon to companies. It would make them more profitable and thereby encourage them to invest more aggressively in growth. It would also allow companies to return more capital to shareholders through dividends and stock buybacks, as the government would be getting a smaller piece of the pie.
Of course, some companies would benefit more from Trump's proposed tax cuts than others. Apple (NASDAQ:AAPL) ranks at the top. It earned $61 billion in pre-tax net income last year, remitting $15.7 billion, or 26%, to the government in the form of income taxes.
Under Trump's proposed 15% rate, Apple would have saved somewhere in the neighborhood of $6.5 billion last year. That's enough to buy 812.5 million "Make America Great Again" hats at Wal-Mart, or 7,065 hats for every Apple employee.
But a hat-buying spree seems unlikely. Apple would probably just raise its dividend or repurchase more stock.
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