Trump's Tax Law Boosts Corporate Cash Savings through Deductions

Companies are saving on cash taxes due to the Trump administration's new tax law. The law accelerates or expands deductions for corporate research, interest payments, and equipment purchases. Verizon Communications and Lumen Technologies are among those benefiting, with Verizon lowering its projected 2025 cash tax costs by $1.5 billion to $2 billion and Lumen requesting a $400 million tax refund.

Verizon Communications and Lumen Technologies have reported significant savings on cash taxes due to the Trump administration's new tax law. The law, which accelerates or expands deductions for corporate research, interest payments, and equipment purchases, has resulted in substantial financial benefits for these companies.

Verizon Communications, one of the leading telecommunications providers, has seen its projected 2025 cash tax costs decrease by $1.5 billion to $2 billion. This reduction is a direct result of the new tax law's provisions, which allow for accelerated depreciation and enhanced interest deductions. These savings will contribute to Verizon's ongoing expansion and innovation efforts, particularly in the realm of 6G technology and connectivity services [1].

Lumen Technologies, another major player in the telecommunications sector, has requested a $400 million tax refund, citing the benefits of the new tax law. Lumen's savings will be used to support its growth initiatives and maintain its competitive edge in the market. The company's strategic moves align with its long-term vision of becoming a leading player in the connectivity and innovation space [2].

Despite the positive impact of the tax law on these companies, it is essential to consider the broader economic implications. The new tax law may lead to increased corporate profits but could also contribute to income inequality and reduced government revenue. Moreover, the long-term effects of the law on the economy and the stock market remain to be seen.

In conclusion, Verizon Communications and Lumen Technologies have benefited significantly from the Trump administration's new tax law, with Verizon reporting a $1.5 billion to $2 billion reduction in projected 2025 cash tax costs and Lumen requesting a $400 million tax refund. These savings will support the companies' growth and innovation initiatives. However, the broader economic implications of the tax law should be carefully considered.

References:
[1] https://www.ainvest.com/news/verizon-communications-files-mixed-securities-shelf-2508/
[2] https://www.ainvest.com/news/dividend-investing-2-names-sell-2-buy-august-2025-2508/