Trump's tax plan could bring $250 billion into the US -- here are the companies set to benefit most

Fake money Donald Trump dollar billJustin Merriman/Getty ImagesPresident Donald Trump’s tax plan could bring $US250 billion into the US in the form of repatriated overseas cash.

President Donald Trump’s new tax plan could cause a tidal wave of internationally held cash to flood back into the US.

The repatriation tax holiday outlined in the plan, released on Wednesday, is designed to incentivise US-based companies that do big business overseas to bring those profits back home.

By Goldman Sachs’ calculation, S&P 500 companies hold $US920 billion of untaxed overseas cash, and the firm estimates that $US250 billion of that would be repatriated. Looking at all US-based companies, Citigroup says there’s a whopping $US2.5 trillion of capital stashed internationally.

Once a company brings that money back to the US, it has a few options for how to use it. The first is reinvestment into core businesses — this is most likely the avenue policymakers would prefer, as it holds the most direct bearing on economic expansion.

Another option is for a company to repurchase its shares — this would be beneficial to stock prices and, by extension, the market as a whole. Buybacks are a good way to achieve immediate share appreciation and signal to investors that a stock is viewed as undervalued.

And regardless of how the cash is used, a tax break for multinational companies at least partially addresses what a recent World Economic Forum survey identified as the most problematic factor for doing business: tax rates.

So with that established, which companies stand to benefit most? Goldman says it’s those holdings the most post-tax cash overseas relative to their market cap — a group heavily concentrated in the tech and healthcare sectors.

The firm has put together a handy list of the stocks that fit the bill. Here are the ones it has identified as the top 13 beneficiaries.

Note: TE Connectivity, which was previously included on the list, reached out to Business Insider after publication to point out that it is incorporated in Switzerland and therefore should be excluded from any discussion of US repatriation. It has been removed from the list.

13. General Electric

Ticker: GE

Sector: Industrials

Total return year to date: -19%

Overseas cash: $US35 billion

Overseas cash as % of market cap: 14%

12. Foot Locker

Ticker: FL

Sector: Consumer discretionary

Total return year to date: -52%

Overseas cash: $US1 billion

Overseas cash as % of market cap: 15%

11. Citrix Systems

Ticker: CTXS

Sector: Tech

Total return year to date: 7%

Overseas cash: $US2 billion

Overseas cash as % of market cap: 16%

10. Western Digital

Ticker: WDC

Sector: Tech

Total return year to date: 29%

Overseas cash: $US5 billion

Overseas cash as % of market cap: 16%

9. Waters Corp.

Ticker: WAT

Sector: Healthcare

Total return year to date: 35%

Overseas cash: $US3 billion

Overseas cash as % of market cap: 17%

8. Ralph Lauren

Ticker: RL

Sector: Consumer discretionary

Total return year to date: -1%

Overseas cash: $US1 billion

Overseas cash as % of market cap: 20%

7. Microsoft

Ticker: MSFT

Sector: Tech

Total return year to date: 22%

Overseas cash: $US128 billion

Overseas cash as % of market cap: 20%

6. Oracle

Ticker: ORCL

Sector: Tech

Total return year to date: 27%

Overseas cash: $US48 billion

Overseas cash as % of market cap: 22%

5. Amgen

Ticker: AMGN

Sector: Healthcare

Total return year to date: 30%

Overseas cash: $US36 billion

Overseas cash as % of market cap: 24%

4. Apple

Ticker: AAPL

Sector: Tech

Total return year to date: 33%

Overseas cash: $US216 billion

Overseas cash as % of market cap: 25%

3. Qualcomm

Ticker: QCOM

Sector: Tech

Total return year to date: -18%

Overseas cash: $US30 billion

Overseas cash as % of market cap: 35%

2. NetApp

Ticker: NTAP

Sector: Tech

Total return year to date: 22%

Overseas cash: $US5 billion

Overseas cash as % of market cap: 36%

1. Cisco Systems

Ticker: CSCO

Sector: Tech

Total return year to date: 13%

Overseas cash: $US68 billion

Overseas cash as % of market cap: 37%

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.