Your Stocks Will Profit From Trump’s New Corporate Tax Cuts

You should stay invested

Mar 20, 2025

Love or hate Trump, he’s your best buddy in investing.

It’s no surprise. Trump is a businessman interested in making money above all. He knows how to run a profitable business and he knows how to keep investors happy.

I can’t stop watching the US from across the ocean.

We in Germany rely on social welfare. A huge chunk of our money goes to government funds that support refugees, people with disabilities, and people without jobs. They receive financial aid that pays their rent, groceries, and even kindergarten.

Getting rich is hard here but we have a social state that does its best to redistribute wealth. It has a communist flavor.

The US is different. Individuality is encouraged. Work your a$$ off and you could get insanely rich (by European standards anyway). The land of opportunities attracts the best talent, which leads to innovation and economic growth.

The result?

The US has by far the most developed capital markets. Compare the total capitalization of the US stock market ($62 trillion) with all of Europe ($17 trillion) and China ($12 trillion).

It doesn’t matter where you invest. What’s happening in the US affects all other markets.

And something interesting is about to happen. Trump is pushing for a new corporate tax cut to 15%.

This will affect your stocks.

Trump already reduced the corporate tax in 2017 from 35% to 21%. The US public companies found themselves with a pile of cash they didn’t know how to spend.

Imagine you have your budget set, expenses planned, and profits reinvested. And then suddenly you’re allowed to keep a few more billions for… whatever.

As a public company, you can’t blow your money in Vegas or boost your paycheck because you respond to the shareholders. So the companies used the extra cash for share buybacks.

The total US buybacks reached insane numbers:

2018: $806 billion
2019: $800 billion
2020: $520 billion
2021: $882 billion

In 2018 they helped avert a bear market (remember the crash in December 2018?). So buybacks are mega useful if you use them strategically, which public companies do.

But they don’t just buy their own stocks. Financial analysts in big commercial banks like Goldman Sachs set up automatic buy orders using the public companies’ cash.

The goal is to start buying the stock once it falls to a pre-determined price level (support) and drive the price up to the next pre-set level (resistance). When a run-up begins, pro traders join, and then the retail public joins. Boom, we boosted the stock price artificially.

I’d prefer the US businesses to invest at least part of the extra cash from the new tax cut in Research and Development. But I’m sure they’ll use most of it for buybacks again.

The tax cut must first be approved by Congress. If that happens, stock prices will keep rising as long as the corporations have enough cash set aside for buybacks.

The new tariffs are driving the markets crazy. The new tax cut will compensate for it. It means your stocks will make you more money.

And if you don’t invest yet, you can’t afford to stay sidelined anymore.

We’re in a bull market
More people invest than ever before
There are a bunch of new technologies
And stock prices are about to get a boost

Upgrade your subscription to paid if you don’t want to miss out on this opportunity. I’ll show you the companies that do buybacks in addition to developing new disruptive technologies.

Paid subscribers of Stay Invested receive a deep dive into stocks every other week. Those are concrete investing ideas with the potential to bring you good returns long term.

That’s your path toward a work-optional life and financial freedom. Everyone deserves it. And Trump is about to help you.

Make sure you’re on track.

This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.