During the presidential election, Donald Trump advocated for a one-time repatriation tax of 10 percent, which is significantly lower than the current rate of 35 percent. That one-time tax could be a boon to some international tech companies including Cisco, Apple, and Juniper.
Many of these corporations currently keep their money tied up overseas to avoid the current high repatriation tax. But this lower tax rate would allow these companies to put more money toward things like mergers and acquisitions, infrastructure spending, and expansion.
If passed, these companies will likely consider bringing cash flow back to the U.S., according to a research note from Goldman Sachs.
Executive Chairman and former Cisco CEO John Chambers has been an advocate of a lower repatriation tax for years saying that it has prevented the company from hiring more U.S. workers, acquiring U.S. companies, and has caused the company to hoard cash overseas, according to Business Insider. However, it is also worth noting that Chambers voted for Hilary Clinton.
Trump has also advocated for increased infrastructure spending and less regulation, which could also lead to more network investment among service providers, Goldman Sachs said.