Berkshire and Holdings Could Benefit from Tax Rate Cuts

The US Senate has approved cutting tax rate from 35% to 21%, which could present windfall gains to corporates and long-term adjustments in operating flow generation. Whereas the tax break will likely be profitable for equity investors such as Berkshire Hathaway (BRK.B), companies engaged in US exports have weakened due to growing expectations of a fiscal deficit and the domestic manufacturing sector. Berkshire is expected to benefit from lower taxes on its holdings.