Estimated Earnings Impact of 1pp Change in Statutory Tax Rate

Estimated Earnings Impact of 1pp Change in Statutory Tax Rate A one percentage point change in the corporate tax rate can have a measurable impact on U.S. corporate earnings, with small companies often feeling the effects more acutely than their larger counterparts. Image: Goldman Sachs Global Investment Research

U.S. Corporate Income Tax Rate

U.S. Corporate Income Tax Rate The trend of declining effective tax rates among S&P 500 companies reflects broader economic shifts and policy decisions that have shaped the landscape of corporate taxation in the United States. Image: Goldman Sachs Global Investment Research

S&P 500 EPS – Potential U.S. Tax Impact on Earnings Per Share

S&P 500 EPS – Potential U.S. Tax Impact on Earnings Per Share Donald Trump’s plan to cut the U.S. corporate tax rate from 21% to 15% could significantly impact S&P 500 earnings per share, potentially increasing EPS by 4% and improving profitability for many companies in the index. Image: BofA US Equity & Quant Strategy

Corporate Profits After Tax vs. S&P 500

Corporate Profits After Tax vs. S&P 500 The gap between the S&P 500 and corporate profits after tax remains wide. Has the S&P 500 more room to fall? Image: Real Investment Advice

After-Tax Corporate Profits as a Share of GDP

After-Tax Corporate Profits as a Share of GDP Profit margins have risen sharply to an all-time high in the third quarter of 2021. Image: Goldman Sachs Global Investment Research