Table 3: Estimated 10-year* revenue impact from tax plans, $bn Based on estimates from both the Tax Policy Center and Tax Foundation House Plan Trump Plan Corporate Tax Reform -890 to -1200 = -1940 to -2630 Lower corporate tax rate (20% under House, 15% under Trump) -1800 to -1850 -2120 to -2350 Full capex expensing, interest expense no longer deductible (mandatory under House, choice between two under Trump)** -450 to -1040 -320 to -590 Deemed repatriation of overseas earnings 140 to 190 150-200 Move to territorial tax system -90 to -160 nla Border adjustment 1070 to 1180 nla Changes to individual income/payroll taxes -980 to -2020 = -2190 to -3730 Repeal estate/gift taxes -190 to -240 -170 to -240 Total (static) estimate -2420 to -3100 -4370 to -6150 *Tax Foundation assumes impact over 2016-2025 and Tax Policy Center assumes impact over 2016-2026 “Under House plan, Tax Foundation separately breaks out estimates for full capex expensing (-$2236) and disallowing interest deduction on new loans (+$1194). Note: estimates rounded to nearest ten billion, with range to incorporate estimates from both sources. Other elements to corporate tax reform not itemized above include eliminating the AMT, repealing certain corporate tax deductions, etc. Source: Urban-Brookings Tax Policy Center, Tax Foundation, BofA Merrill Lynch US Equity & US Quant Strategy (calculation of ranges) From a sector and industry perspective there are haves and have-nots based on each policy, but in aggregate most sectors have some puts and some takes based on tax reform. The table below shows some relevant aggregate statistics by sector that inform our subsequent analysis. Table 4: Estimated overseas cash vs. last 12 month effective tax rate vs. COGS net exports by sector Est. cash Overseas cash_ Effective tax Net % imported vs Sector overseas ($bn) % mkt cap rate LTM exported COGS Discretionary 15 2.9% 28% -14% Staples 68 3.2% 29% -13% Energy 39 2.6% 21% -3% Health Care 187 10% 23% A% Industrials 12