Latest news with #taxplan
Yahoo
4 hours ago
- Business
- Yahoo
How Trump's 'One Big Beautiful Bill' may fuel Amazon's robotic rise
Amazon's (AMZN) robot takeover may be coming, and President Trump's tax plan could help pay for it. The sweeping corporate tax reform, part of the One Big Beautiful Bill Act (OBBBA), could give Amazon the financial tailwind to accelerate its investment in warehouse robotics and AI. According to a Morgan Stanley report, Amazon stands to gain an annual $15 billion in free cash flow under the new bill. The estimate is based on tax accounting projections for 2025 through 2027, with benefits tapering slightly to $11 billion by 2028. Morgan Stanley notes Amazon could reallocate part of the windfall toward next-generation investments. The tax benefits are part of a broader package to encourage tech giants like Amazon, Google (GOOG), and Meta (META) to invest "more aggressively" in AI, chips, and infrastructure. Amazon is set to report its second quarter earnings Thursday after the market close. Its stock has gained 7% year to date, behind the S&P 500's (^GSPC) 8% advance. Investor expectations for Big Tech are sky-high as the "Magnificent Seven" stocks continue to trade at outsized valuations, making it crucial for the giants to keep up their competitive advantages. Analysts say warehouse robotics underpins key parts of Amazon's retail and logistics operations. Investing 50% of its new free cash flow, or about $7.5 billion a year, into robotics, would be a game changer, Morgan Stanley's Brian Nowak wrote. Morgan Stanley estimates if 10% of Amazon's global fulfillment volume runs through next-gen robotics warehouses, the company could save between $2 billion and $4 billion annually by 2027. Cost reductions scale up to nearly $10 billion a year if 25% of units are handled by advanced robotics. Amazon currently operates approximately 700 fulfillment centers. A $7.5 billion investment could potentially build 17 new robotics fulfillment centers each year at around $450 million apiece or retrofit 75 existing warehouses at $100 million each. Analysts say Amazon is also likely to pour tax savings into its cloud and generative AI business. In Q1, AWS sales grew 17% year over year to $29.3 billion. Maxim Group analyst Tom Forte points out that Amazon could benefit from AI on both sides — growing AWS through selling AI tools while using automation technology to reduce corporate labor costs. "I'm highly confident it will result in more investment spend, and definitely not dividends,' he said of Amazon's new tax windfall. "The big difference between Amazon under Bezos and Amazon under Jassy is that Jassy has found a way to invest while still generating margin and cash flow." One potential wrinkle is tariffs. Forte notes that if the cost of hardware, data centers, or compute power rises due to trade policy, it could make those investments less efficient and potentially force Amazon to spend more to achieve the same level of output. In Q1 2025, Amazon posted robust results. Earnings per share rose 62% year over year to $1.59, while net sales rose 9% to $155.7 billion. Online stores accounted for $57.4 billion, up 5% year over year. For Q2, Wall Street is forecasting revenue of $162.15 billion, with adjusted EPS of $1.81, according to Bloomberg consensus data. Morgan Stanley expects Amazon to be the biggest single corporate beneficiary of the OBBBA, ahead of Alphabet and Meta, due to its unique mix of retail infrastructure and cloud services. While companies like Apple (AAPL) may return tax windfalls to shareholders via buyback and dividends, Amazon is more likely to reinvest, Forte said, especially in states where the company is expanding its cloud and logistics operations, including Pennsylvania, North Carolina, and Georgia. Francisco Velasquez is a Reporter at Yahoo Finance. He can be reached on LinkedIn and X, or via email at
Yahoo
4 hours ago
- Business
- Yahoo
How Trump's 'One Big Beautiful Bill' may fuel Amazon's robotic rise
Amazon's (AMZN) robot takeover may be coming, and President Trump's tax plan could help pay for it. The sweeping corporate tax reform, part of the One Big Beautiful Bill Act (OBBBA), could give Amazon the financial tailwind to accelerate its investment in warehouse robotics and AI. According to a Morgan Stanley report, Amazon stands to gain an annual $15 billion in free cash flow under the new bill. The estimate is based on tax accounting projections for 2025 through 2027, with benefits tapering slightly to $11 billion by 2028. Morgan Stanley notes Amazon could reallocate part of the windfall toward next-generation investments. The tax benefits are part of a broader package to encourage tech giants like Amazon, Google (GOOG), and Meta (META) to invest "more aggressively" in AI, chips, and infrastructure. Amazon is set to report its second quarter earnings Thursday after the market close. Its stock has gained 7% year to date, behind the S&P 500's (^GSPC) 8% advance. Investor expectations for Big Tech are sky-high as the "Magnificent Seven" stocks continue to trade at outsized valuations, making it crucial for the giants to keep up their competitive advantages. Analysts say warehouse robotics underpins key parts of Amazon's retail and logistics operations. Investing 50% of its new free cash flow, or about $7.5 billion a year, into robotics, would be a game changer, Morgan Stanley's Brian Nowak wrote. Morgan Stanley estimates if 10% of Amazon's global fulfillment volume runs through next-gen robotics warehouses, the company could save between $2 billion and $4 billion annually by 2027. Cost reductions scale up to nearly $10 billion a year if 25% of units are handled by advanced robotics. Amazon currently operates approximately 700 fulfillment centers. A $7.5 billion investment could potentially build 17 new robotics fulfillment centers each year at around $450 million apiece or retrofit 75 existing warehouses at $100 million each. Analysts say Amazon is also likely to pour tax savings into its cloud and generative AI business. In Q1, AWS sales grew 17% year over year to $29.3 billion. Maxim Group analyst Tom Forte points out that Amazon could benefit from AI on both sides — growing AWS through selling AI tools while using automation technology to reduce corporate labor costs. "I'm highly confident it will result in more investment spend, and definitely not dividends,' he said of Amazon's new tax windfall. "The big difference between Amazon under Bezos and Amazon under Jassy is that Jassy has found a way to invest while still generating margin and cash flow." One potential wrinkle is tariffs. Forte notes that if the cost of hardware, data centers, or compute power rises due to trade policy, it could make those investments less efficient and potentially force Amazon to spend more to achieve the same level of output. In Q1 2025, Amazon posted robust results. Earnings per share rose 62% year over year to $1.59, while net sales rose 9% to $155.7 billion. Online stores accounted for $57.4 billion, up 5% year over year. For Q2, Wall Street is forecasting revenue of $162.15 billion, with adjusted EPS of $1.81, according to Bloomberg consensus data. Morgan Stanley expects Amazon to be the biggest single corporate beneficiary of the OBBBA, ahead of Alphabet and Meta, due to its unique mix of retail infrastructure and cloud services. While companies like Apple (AAPL) may return tax windfalls to shareholders via buyback and dividends, Amazon is more likely to reinvest, Forte said, especially in states where the company is expanding its cloud and logistics operations, including Pennsylvania, North Carolina, and Georgia. Francisco Velasquez is a Reporter at Yahoo Finance. He can be reached on LinkedIn and X, or via email at Sign in to access your portfolio
Daily Mail
22-07-2025
- Business
- Daily Mail
EXCLUSIVE Hidden cost of Labor's new super tax that could send prices soaring at Coles and Woolworths
Labor's radical tax plan for superannuation could end up seeing Australians pay more for their weekly food shop, farmers are warning. Parliament resumed for the first time since the May election on Tuesday, and one of the key pieces of legislation the Albanese government will try to get passed is a new tax on superannuation savings even before the funds are accessible. Anthony Albanese 's government wants to impose a new 15 per cent tax on unrealised super balances above $3million, which would see self-managed super funds taxed on the paper value of assets before they are sold. This radical departure from the usual capital gains tax practice would also double the headline tax rate to 30 per cent, with superannuation already subject to a 15 per cent earnings tax during the accumulation or working phase. While most wage earners have their super invested in liquid assets like shares and bonds, many farmers hold self-managed super funds tied to their land, and may be forced to sell the farm to stay under the $3million cap. National Farmers' Federation president David Jochinke told Daily Mail Australia that this could result in less supply of food and therefore higher prices. 'Higher taxes and costs on farm business ultimately make it harder for them to keep fresh produce on supermarket shelves, and this one has the potential to be significant,' he said. 'These farmers will be taxed simply because their land value has gone up on paper. No additional income. No sale. Just a tax bill.' 'This is not just about yachts and waterfront mansions. It's about orchards, dairies, and the family farms that put food on the table.' The National Farmers Federation estimates Labor's Better Targeted Superannuation Concessions bill from 2023 would affect 3,500 farmers immediately, with Labor proposing to backdate it to July 1. It estimates 17,000 family farms are held within a self-managed super fund, which can have up to six members. The government will not index that $3million threshold, meaning more and more people will become subject to the tax as inflation continues. The NFF argues this would see another 14,000 farmers have assets worth more than $3million in coming decades. 'We urge the government to proactively consider changes it can make to the proposed 'Super Tax' to avoid impacts on farmers and small businesses across the country,' Mr Jochinke said. Labor has a landslide majority in the House of Representatives but needs the Greens in the Senate to get legislation passed. The Greens want the threshold lowered from $3million to $2million but indexed for inflation. But Mr Jochinke said if the government is forced through negotiations to accept the Greens' position it would be an even worse outcome. 'This would be an even more devastating outcome for Australia's farming families than the original Super Tax parameters,' he said. 'Thousands more farms will be in jeopardy if the threshold is lowered to $2million. 'We are against the current bill, and in particular its taxing of unrealised gains, but to aim for an even lower threshold in order to ram the bill through the Senate is just reckless.' Nick McKim, the Greens' treasury and economic justice spokesman, said superannuation had become a way for people to accumulate vast sums at a tax rate that was well below that applied to income. 'Over time Australia's superannuation system has become less about providing a dignified retirement for working people, and more of a vehicle for wealth accumulation. This needs to change,' he said. 'The Greens want to ensure that very wealthy Australians pay their fair share of tax, so that governments can do more to support people who need it.'
Yahoo
17-07-2025
- Business
- Yahoo
Louisiana Bond Commission OKs 3 East Baton Rouge tax plan ballot measures
BATON ROUGE, La. (Louisiana First) — The Baton Rouge mayor's office announced that the Louisiana State Bond Commission approved three ballot measures that are part of his tax plan. In May, the Metro Council approved a majority of Mayor-President Sid Edwards' Thrive EBR plan to rededicate taxes. Edwards' office said the plan proposes the renewal and rededication of portions of existing millages from the library system, Council on Aging and Mosquito Abatement and Rodent Control. The plan aims to address the budget while maintaining critical services and reducing debt without increasing taxes. 'I'm pleased the State Bond Commission approved our request,' Edwards said. 'Now it's up to the voters to decide. Thrive EBR is a smart way to help fund our infrastructure and pay down debt at no additional cost to taxpayers.' Voters will see three ballot measures in the election set for Nov. 15. East Baton Rouge mayor announces EMS, fire department merger Latest News Puerto Rico bans gender-affirming care for trans people under 21 Airfare by algorithm: Delta leans into AI pricing — but is it a good thing? Road closures, high water reported in Baton Rouge, surrounding areas Republicans to tee up House vote on Epstein resolution White House faces bipartisan pressure to release Epstein documents Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Solve the daily Crossword
Bloomberg
04-07-2025
- Business
- Bloomberg
Trump's Tax Package Curbs Renewable Energy Just as AI's Power Needs Soar
The bill unplugs more than 300 gigawatts of wind and solar projects that would have been built through 2035, according to one analysis. By Save Welcome to our guide to the commodities markets powering the global economy. Today, Americas Power and Natural Disasters Team Leader Brian Eckhouse looks at how the new US tax plan crimps renewables development. As Donald Trump's $3.4 trillion fiscal package moved through Congress, there was some relief in the renewables industry that a proposed excise tax on wind and solar projects had been expunged.
