Bloomberg Intelligence's 'Equity Market Minute' 9/23/2021

The video discusses the impact of tax reform on S&P 500 corporate earnings, highlighting a significant reduction in tax rates from 20% to 16% since the 2017 tax reform. This change has led to a 200 basis point increase in net income margins. Most sectors have benefited from these tax changes, except for real estate, which pays more taxes relative to earnings. Sectors like utilities, information technology, and industrials have seen the largest tax payment declines.

What challenge is highlighted as potentially underappreciated for S&P 500 corporate earnings?

• Inflation

• Tax reform

• Currency fluctuations

• Rising interest rates

What was the approximate tax rate for the S&P 500 index before the 2017 tax reform?

• 20%

• 18%

• 22%

• 16%

By how many basis points did the net income margin expand due to tax reforms?

• 100 basis points

• 150 basis points

• 200 basis points

• 250 basis points

Which sector is noted as paying more tax relative to earnings compared to 2011?

• Utilities

• Information Technology

• Industrials

• Real Estate

Which sectors experienced the largest decline in tax payments relative to earnings?

• Consumer Staples, Communication Services, and Real Estate

• Healthcare, Real Estate, and Consumer Discretionary

• Utilities, Information Technology, and Industrials

• Financials, Energy, and Materials