Why Apple Is The Biggest Winner Of Trump's Infrastructure Plan

Ever since the election, traders have been trying to determine which stocks are in the best position to benefit from President Donald Trump’s proposed plan for $1 trillion in infrastructure spending over the next decade.

Construction and materials stocks could certainly get a boost from a huge infrastructure investment, but the biggest beneficiary may be an unlikely name.

While it may not be directly impacted by infrastructure spending, Apple Inc. AAPL is positioned to be a major indirect winner.

President Trump has proposed that the massive infrastructure project can be paid for via the aggressive tax reform plans that the administration has.

“The most oft-mentioned revenue source has been a ‘deemed’ repatriation tax on companies’ overseas earnings of as much as 10%, as in Trump’s tax plan,” Height Securities explains.

Related Link: Why Apple Needs China Growth To Strengthen This Year

American companies have billions of dollars stuck overseas that they can’t currently access because they are unwilling to pay U.S. taxes to get the money back into the country. Trump has proposed a one-time repatriation holiday with rates as low as 10 percent and then a permanent corporate tax cut from 35 percent to 20 percent.

No American company has more cash overseas than Apple. In January, CEO Tim Cook said a repatriation window would be “very good for the country and good for Apple.”

Apple currently has $231.3 billion overseas in tax shelters. A 10 percent repatriation holiday would allow Apple to save nearly $58 billion in taxes if they take advantage of the opportunity. At the same time, the government would generate more than $23 billion in tax revenue from Apple alone.