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The days of corporations keeping their cash overseas, however, could be coming to an end. President-elect Donald Trump has proposed lowering the corporate income tax rate to 15% from 35% in an effort to encourage hiring, innovation, and expansion. More importantly, he’s advocated for a special tax holiday, whereby corporations with overseas cash would pay a tax rate of just 10% on that income in order to bring it back into the United States.
Cisco stock could be one of the biggest beneficiaries of Trump’s proposal. The company has more than $60.0 billion abroad. If the company could repatriate its cash, executives could pay off the firm’s entire debt load with enough cash to spare to pay out a 12.9% special one-time dividend.

Investors will be waiting for more details on Donald Trump’s tax plan. Any tax holiday will need his approval and will need to be implemented by Congress. If Trump follows through on his campaign promises, it could be a major catalyst for Cisco stock and the entire technology industry.
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