Thanks, GOP! T-Mobile won't have to pay any taxes until 2024 now
T-Mobile ran the numbers on the new Republican tax cuts bill making its way through the House and Senate, and concluded that it won't have to pay any cash taxes for the next seven years.
This sweet revelation dawned on the carrier's CFO while they were probing different scenarios under which the reconciled bill may end up, and, even in the most dire of circumstances presented in the final bill, T-Mobile would be tax-exempt of sorts for the foreseeable future.
As per T-Mobile's Chief Financial Officer Braxton Carter:
And you look at the prior guidance that we had out there that basically shows that during the next five-year period we’re going to be picking up $3 billion to $4 billion of additional cash flow in the business. And then once we do (get back) to a cash-paying position the low rate has significant ongoing benefits to the ultimate cash generation of our company.
Hopefully T-Mobile will use all that newfound cash to build up its upcoming 5G network and improve on existing coverage and spotty service at more remote places, rather than stock buybacks or executive bonuses, or the whole tax cuts bill spirit risks going the way of all other tax cuts before it.
source: Fierce Wireless
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