Summary

Shifting from a worldwide system to a territorial system ends the penalty on companies headquartered in the United States.

They’ll no longer pay additional penalties when they bring overseas profits back home.

A low, one-time tax to bring back money currently parked offshore will bring back our wealth so that we can rebuild our country.

This idea was discussed in more depth with members of my private investing community, Intelligent REIT Investor.

As Congress prepares to vote on a final tax reform bill, I thought it would be valuable to provide readers with my top 10 REITs that should be the biggest beneficiaries in 2018. Just a few days ago, I wrote an article titled, Why Real Estate Investors Can Sleep Well At Night, Thanks To President Trump (received just under 600 comments) and I explained,

“… the proposed Tax Bill is going to provide massive benefits for ALL Americans, not just wealthy real estate investors. The REIT laws were structured to benefit ALL Americans, providing a vehicle for them to invest in high quality real estate that produces durable sources of dividend income.”

Withstanding the new tax ruling in which REIT dividends and other pass-through entities get a tax cut (from 39.6% to 29.6%) – a 25% pay raise – the Tax Bill will also provide corporations substantial benefits that will create a “goldilocks environment” for stocks, per CNBC. (For related reading, see: Trump's Tax Reform Plan.)

• $5.5 trillion in total tax cuts, including the largest corporate tax rate cut in the history of our country (from 35% to 21% starting in 2018).
• $415 billion of additional tax cuts for S corps, partnerships and sole proprietors.
• $1.8 trillion of tax cuts for businesses to level the playing field for American workers and companies so they can WIN against their foreign competition.
• Over $4 trillion of reforms that eliminate special interest tax breaks and loopholes.

The Council on Economic Advisers estimates this will grow the economy by 3% over the next 10 years. We are going from the highest tax rate in the developed world, to one of the lowest. That means the jobs and companies are coming back to America, where they belong.

Shifting from a worldwide system to a territorial system ends the penalty on companies headquartered in the United States. They’ll no longer pay additional penalties when they bring overseas profits back home. A low, one-time tax to bring back money currently parked offshore will bring back our wealth so that we can rebuild our country.

Let’s face it, and it’s rather elementary, U.S. corporations will now be incentivized to invest heavily inside the U.S. This means that there will be a wave of capital flowing into the markets to invest in machinery, equipment, and to grow dividends!

Who doesn’t love dividend growth?

It’s bi-partisan.

But I am especially interested to see the stars lining up for commercial real estate investors. Because the trillions of capital flowing into the markets will spur corporations to invest heavily in machinery and equipment, and guess what corporations need to do when they purchase new stuff?

​Continue reading at Seeking Alpha.