Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Health care companies are big fans of the GOP tax reform. Photo: Bryan R. Smith / AFP via Getty

Health care companies at the J.P. Morgan Healthcare Conference in San Francisco are drooling over the financial windfalls they expect to reap from the Republican tax overhaul signed into law before Christmas.

Between the lines: Health care firms — many of which have a vast majority of their business in the U.S., if not all of it — expect to see billions of dollars in corporate tax savings. Companies plan on using that money to pay down debt, buy back stock or acquire competitors — not to funnel higher wages back to workers.

What we're hearing: Tax reform was the topic on the top of most analysts' and investors' minds on the first day of the conference. Here's what a handful of health care executives said.

  • Cardinal Health: The tax changes are "important and positive for us," said Jorge Gomez, the chief financial officer of the drug and device distributor. The elimination of the manufacturing deduction offsets some of the benefit of the lower corporate tax rate, but Cardinal Health is "really excited" about the long-term effects, Gomez said.
  • Express Scripts: The pharmacy benefit manager expects $850 million in corporate tax savings. "We will not be sitting on that cash, I can promise you that," CEO Tim Wentworth said. (Translation: mergers and acquisitions, with no mention of higher worker wages.)
  • Abbott Laboratories: Even though Abbott already has an effective tax rate of 16.5%, lower than the new rate of 21%, the company still likes the new floor and expects to pay down more debt immediately. "What we like about tax reform is the flexibility it is going to provide to us," CFO Brian Yoor said. "It's not unfavorable to Abbott."
  • Pharmaceutical companies large and small view the tax overhaul as a major win for their industry.

Go deeper

Mike Allen, author of AM
8 hours ago - Politics & Policy

Biden adviser Cedric Richmond sees first-term progress on reparations

Illustration: "Axios on HBO"

White House senior adviser Cedric Richmond told "Axios on HBO" that it's "doable" for President Biden to make first-term progress on breaking down barriers for people of color, while Congress studies reparations for slavery.

Why it matters: Biden said on the campaign trail that he supports creation of a commission to study and develop proposals for reparations — direct payments for African-Americans.

Cyber CEO: Next war will hit regular Americans online

Any future real-world conflict between the United States and an adversary like China or Russia will have direct impacts on regular Americans because of the risk of cyber attack, Kevin Mandia, CEO of cybersecurity company FireEye, tells "Axios on HBO."

What they're saying: "The next conflict where the gloves come off in cyber, the American citizen will be dragged into it, whether they want to be or not. Period."

10 hours ago - Politics & Policy

Cedric Richmond: We won't wait on GOP for "insufficient" stimulus

Top Biden adviser Cedric Richmond told "Axios on HBO" the White House believes it has bipartisan support for a stimulus bill outside the Beltway.

  • "If our choice is to wait and go bipartisan with an insufficient package, we are not going to do that."

The big picture: The bill will likely undergo an overhaul in the Senate after House Democrats narrowly passed a stimulus bill this weekend, reports Axios' Kadia Goba.