VRRM - If corporate tax hike comes to business process outsourcing: Baird weighs impacts

With investor attention this week focused heavily on a massive new infrastructure package coming out of Washington - and associated tax reforms that may be accompanying that - Baird has taken a look at the effects of boosting the corporate tax rate from its current 21% on financial technology firms. And as with restaurants, and with brokers and asset managers, the effect may be dictated by companies' exposure to the U.S. market. It looked at a few scenarios to determine EPS sensitivity to a tax hike. Assuming U.S. net income percentage was the same, it used companies' percentage of U.S. revenue and multiplied the potential change in rates by that amount (acknowledging that tax reform won't likely fully hit 2022 earnings, but that the process of analyzing percentage impact to EPS doesn't matter much to which year it's looking at). And despite varying rates for the companies themselves, the biggest

For further details see:

If corporate tax hike comes to business process outsourcing: Baird weighs impacts