The recent tax overhaul ushered in by a majority republican congress will certainly bring changes to all tax payers But one of the groups it will perhaps bring some of the most sweeping changes to are tech companies. While the corporate tax rate fell 14% from 35% to just 21% this is not as big of a fall for tech companies who typically pay much lower effective tax rates. Effective tax rates are what companies actually pay in taxes once all of their tax liability deductions are included in the final bill. It should be noted that tech companies are often times some of the best at minimizing their effective tax rate, some of which are far below the now 21% corporate tax rate. If they are forced to now adhere to this 21% floor tax rate for businesses they may now actually see their tax bill rise instead of fall. This added tax bill could be passed on to consumers in the form of higher prices for their tech based products. Another thing to note about tech companies specifically is that they often times have a great deal of cash stored outside of the United States as to avoid paying taxes on this money. It is possible, under the new tax plan, that these tech giants would have to pay a one time fee on all of that money coming back into the United States which may cut into their overall profits and bottom line. This one time fee is expected to be just over fifteen percent which is significant albeit lower than the previous 35% tax rate these companies were once subject to. If indeed these tech giants bring all of this cash once tied up overseas back to the United States there is a great deal of speculation on how they might use it. While some insist that the additional cash may be used to higher more workers and improve wages for existing workers, others insist that the cash will be used for automation which could actually cost people their jobs in the long run. Many other news outlets have created a great deal of charts to better visualize what changes we can expect to see in the near and distant future. As we learn more about the lasting effects of this tax bill the technology industry will continue to be a fascinating focal point.