Trump Tax Windfall Ignites Next Wave of American Prosperity

In Washington, tax policy rarely moves the needle for investors. But this time is different.

President Trump’s One Big Beautiful Bill Act, passed on July 3, is already reshaping the financial landscape for America’s biggest businesses. 

And for shareholders, the impact is nothing short of remarkable.

Just follow the money...

AT&T, which has no shortage of debt to pay down, expects to save up to $2 billion in taxes this year. That’s before the full benefits even kick in. 

By 2026, its free cash flow could rise to $19 billion, thanks in large part to tax-driven savings. That alone adds up to billions in new firepower for dividends, buybacks or investment in growth.

But that’s just the start.

The biggest windfalls are landing in the hands of America’s tech giants, companies with huge competitive advantages, fortress balance sheets and smart management. 

The types of companies we look for at American Prosperity.

Zion Research Group now estimates $148 billion in aggregate cash tax savings among just 369 S&P 500 companies. 

And Alphabet and Microsoft — both in our portfolio — are front and center. Together with Amazon and Meta, these four companies represent 38% of that total. 

That’s nearly $56 billion in potential cash savings, much of which could boost free cash flow, depending on how companies reinvest or allocate the funds.

These aren’t speculative biotech firms or pre-revenue startups. These are some of the most dominant and innovative businesses the world has ever seen. 

And now they’re flush with even more cash.

The bulk of the savings comes from three major tax shifts…

In other words, the government just handed cash-rich innovators even more fuel for growth.

Alphabet’s search and ad business throws off tens of billions in cash each year, while its cloud and AI efforts are accelerating. 

Microsoft, meanwhile, is embedding AI across its product suite and growing Azure at double-digit rates. These businesses don’t just ride trends, they shape them.

Now, thanks to tax relief, they’re doing it with even more dry powder.

Most importantly, this isn’t a one-off gimmick. 

While some tax benefits are front-loaded, others will play out over years. 

That means we could see several years of enhanced cash flow, expanded capital return programs, and accelerated R&D investment. 

For long-term investors like us, that’s exactly what we want.

Wall Street might still be buried in footnotes, but the message is already clear: America’s strongest businesses just got a major boost, and Mr. Market hasn’t fully priced it in yet.

While the headlines are noisy with talk of tariffs, politics, and interest rates, the real story is playing out underneath the surface. 

Free cash flow is going up. Balance sheets are getting stronger. Capital investment is rising. 

And America’s best companies are leading the charge. At American Prosperity, we’re not surprised. When you own world-class businesses and give them more capital to work with, great things happen. 

That’s why our approach makes the most sense. That’s why we’re long Alphabet and Microsoft.

And that’s why we remain bullish on the future of American enterprise.

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If you have questions, you can send them to me at [email protected].

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Regards,

Charles Mizrahi
Prosperity Insider