Tesla and 9 Other Companies That Would Take a Hit From a 15% Minimum Corporate Tax

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Democrats proposed lifting the corporate tax rate to help fund climate and healthcare package, which passed in the Senate Sunday. If the tax remains part of the deal, companies—specifically larger ones—could take a hit. 

The original proposal included a plan to raise revenue through a 15% minimum corporate tax rate. That could be modified, though higher taxes on companies is likely to remain a priority.

If the tax goes through, larger companies would bear the burden. The tax would apply to those that have averaged $1 billion of adjusted pretax profit in the past three years.

Strategists at

UBS

screened for companies that both fit that bill and have recently been paying less than 15% in cash taxes, and found 102. Of those, here are few that are particularly vulnerable. 

Utility American Water Works Company (ticker: AWK) has recently enjoyed a cash tax rate of 0.1% and has brought in a pretax profit of $1.1 billion on average in the past three years. Its peer,

Ameren

(AEE), has had a 0.1% cash tax rate and pretax profit of $1.1 billion, as well. 

Advanced Micro Devices (AMD) has had a 1% tax rate and average pretax profit of $1.8 billion. 

Nvidia

(NVDA) has had a 4.7% tax rate and average pretax profit of $4.8 billion. 

Broadcom

(AVG) has had a 6.8% tax rate and pretax profit of $6.8 billon.  

Apollo Global Management

(APO) has had a 5.1% tax rate and pretax profit $2.3 billion. 

Ford Motor

(F) has had a 4.3% tax rate and pretax profit of $4.93 billion. 

Tesla

(TSLA) has had a 5.3% tax rate and pretax profit of $2.3 billion. 

Amazon.com

(AMZN) has had a 9% tax rate and pretax profit of $25.4 billion. 

Salesforce

(CRM) has had a 3.1% tax rate and pretax profit of $1.6 billion. 

These companies are candidates to see lowered earnings from higher taxes.