GOP Makes It Rain For Telecom: T-Mobile Tells Investors It Won’t Pay Taxes Until 2024

If you happen to sit at the top of the food chain of a telecom company, it’s been a real good couple of weeks. Last week, President Trump’s FCC stripped away Obama-era Net Neutrality regulations in a party-line vote, clearing the way for internet service providers to become the ultimate arbiters of online speech. But that was just the warm-up.

This week, as the GOP frantically rams through a huge tax cut for American businesses, things are getting even better for telecom. But don’t take my word for it. Here’s T-Mobile’s Braxton Carter talking to investors during a recent conference, according to Fierce Wireless.

“With the tax reform; and it is looking like it’s going to be a reality and we’re really excited about it; we’ve modeled the various versions of the House and Senate bill,” Carter said. “And the bottom line is we think that we won’t be in a cash tax-paying situation given the immediate expense of capex, given the reduction of the rates. I mean even considering what could be adverse, for a short period of time, limitations on the deductibility of interest, we are not going to be in a cash tax-paying position based upon the current modeling until 2024, very end of 2023.”

Yes, T-Mobile doesn’t plan on paying taxes until 2024 as a result of the new legislation. So what is the carrier planning to do with that extra windfall? Create jobs? Invest in infrastructure? Build out to rural areas? Nope. A $1.5 billion stock buyback.

Needless to say, customers aren’t thrilled.

 

Featured image: Pixabay

 

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