The Cut Cut Cut Act!

What is cigarette giant British American Tobacco getting out of the roughly 20lb, 600-page tax bill that was recently passed by the Trump administration?

A nice tax cut, that’s what.

According to The Telegraph, BAT, a UK-based company said the US Tax Cuts and Jobs Act; a bill which was introduced last year should reduce its tax rate from roughly 30 percent to the high 20’s in 2018.

The Tax Cuts and Jobs Act of 2017 is a congressional revenue act introduced in Congress, which amended the Internal Revenue Code of 1986 by changing several key elements of the code.

One of those major elements being, the code on tax rates for businesses and individuals.

BAT management said the legislative change should result in a 6 percent boost to its full-year earnings per share.

If you remember back on July 25th, 2017, BAT announced through a press release that they were acquiring the remaining 57.8% of Reynolds American Inc. (“Reynolds”) the company did not already own. This full ownership of a US firm will play a major factor in the potential tax reduction.

Currently, US businesses pay a 35% corporation tax rate for income earned in any country; however, this will change with a US plan to impose corporation tax on overseas earnings at the same rate the country those profits were made in would charge.

This change is meant to encourage US companies to return back to domestic soil, after having relocated to lower-tax regions of the world to reduce their tax.


Our newsletter subscribers know about our upcoming sales before anyone else. Make sure you’re in the know! Sign-up below. (Pssst, you will also get 30 loyalty points for signing up if you are a loyalty program member. More here: https://goo.gl/4tEfkh)

 

Copywriter at Mt Baker Vapor
Copywriter - I don't copy write; I write copy right.

4 thoughts on “The Cut Cut Cut Act!

  1. They are getting the same tax cut your company, my company, and every other company is getting. Whats the point of this article?

  2. “What is cigarette giant British American Tobacco getting out of the roughly 20lb, 600-page tax bill that was recently passed by the Trump administration?

    A nice tax cut, that’s what”

    Purely informational? Then why mention one company in the intro as if they are the only company getting this break? These breaks are applicable to every company that operates in the US. This article reads as if BAT is getting something extra.

    1. The title is simply the hook to bring people in.
      (If you remember back on July 25th, 2017, BAT announced through a press release that they were acquiring the remaining 57.8% of Reynolds American Inc. (“Reynolds”) the company did not already own. This full ownership of a US firm will play a major factor in the potential tax reduction.)
      BAT is positioning itself with the acquisition of Reynolds. And by acquiring Reynolds in full, they are now in better position for the break in taxes, as well as the ever-changing landscape in the e-cigarettes industry.
      We have nothing against the current administration, but we are a company that manufacturers products alternative to traditional tobacco cigarettes which is why the information was disseminated.

Leave a Reply

Your email address will not be published. Required fields are marked *