Trump's tax cut proposal shines light on MLPsNEW YORK/HOUSTON (Reuters) - The Trump administration’s proposal to slash tax rates on so-called pass-through businesses would deliver a windfall to investors in master limited partnerships and could offer a much-needed lift to this niche segment of the energy market. The tax plan outline released on Wednesday by U.S. President Donald Trump would sharply slash business taxes and discount the rate on overseas corporate profits brought back into the United States. The proposed changes include a cut to the top tax rate on pass-through businesses to 15 percent from the current rate of up to 36.9 percent. Pass-throughs get that name because taxes are not paid by the business itself but pass through to their owners’ individual taxes, at that rate. The change would largely benefit owners of private businesses, but U.S. stock market investors holding shares of master limited partnerships, or MLPs, would receive the same treatment. MLPs build the pipelines and storage tanks and are a common corporate structure in the oil and gas infrastructure sector.  “If the average rate (for MLP investors) is in the 30s, reducing it to 15 percent would be tremendously attractive,” Robert Willens, president of tax and accounting advisory firm Robert Willens LLC, said on Wednesday.  He said if the cuts come through they would make MLPs “the most attractive investment from a tax point of view.” Mike Bresson, a tax partner with the law firm Baker Botts in Houston said Trump’s proposed change would enhance an already-superior tax structure enjoyed by MLPs. “They’re talking about giving MLPs the same 15 percent tax rate that corporations get, so that would actually expand the benefits of MLPs over corporations,” Bresson said.  “The devil is in the details and we haven’t seen them.” MLPs have broadly underperformed the wider stock market over the past several years, largely due to the weakness in oil prices. The energy sector was pummeled as crude prices tumbled from above $100 per barrel in mid 2014 to below $30 early last year. They only recently stabilized at around $50 for U.S. oil. “There has been a gradual improvement in MLPs now that energy prices have stabilized. It’s still a decent place to invest even without the tax cut,” said Bryant Evans, portfolio manager at Cozad Asset Management in Champaign, Illinois. “There should be an almost immediate bounce (in price) once the proposal is solid. It should create more demand for MLP stock in general. But beyond an immediate bounce, it all goes back to how their businesses are doing.” Even with their above-average dividend yields, MLPs have lagged the S&P 500’s total return in the last year by around 240 basis points.  MLP stocks - more specifically, units - are up as a group so far this year, with the Alerian MLP ETF up 1 percent, though they have fallen 2.1 percent since Trump took office - even as his administration has been more friendly to sector projects like the Keystone XL Pipeline and the Dakota Access Pipeline. The ETF rose 0.8 percent Tuesday as details of the tax proposal were reported first by the Wall Street Journal. It was the largest gain for the fund in six weeks. Among the best performers in the sector this year are Shell Midstream Partners and Tallgrass Energy Partners, both up by more than 11 percent in 2017, while Plains All American Pipeline and Genesis Energy are down 5 percent and 9 percent year to date, respectively. politicsNews
trump tax cut proposal shines light mlpsnew reuters the trump administration proposal slash tax rates businesses would deliver landfall investors master limited partnerships could offer lift niche segment energy market the tax plan outline released wednesday president donald trump would sharply slash business taxes discount rate overseas corporate profits brought back united states the proposed changes include cut top tax rate businesses percent current rate percent get name taxes paid business pass owners individual taxes rate the change would largely benefit owners private businesses stock market investors holding shares master limited partnerships maps would receive treatment maps build pipelines storage tanks common corporate structure oil gas infrastructure sector if average rate map investors reducing percent would tremendously attractive robert willing president tax accounting advisory firm robert willing llc said wednesday he said cuts come would make maps attractive investment tax point mike reason tax partner law firm baker boats houston said trump proposed change would enhance tax structure enjoyed maps they talking giving maps percent tax rate corporations get would actually expand benefits maps corporations reason said the devil details seen maps broadly underperformed wider stock market past several years largely due weakness oil prices the energy sector plummeted crude prices stumbled per barrel mid early last year they recently stabilized around oil there gradual improvement maps energy prices stabilized it still decent place invest even without tax cut said bryant evans portfolio manager could asset management campaign illinois there almost immediate bounce price proposal solid it create demand map stock general but beyond immediate bounce goes back businesses even dividend yields maps tagged s p total return last year around basis points map stocks specifically units group far year american map et percent though fallen percent since trump took office even administration friendly sector projects like keystone xl pipeline dakota access pipeline the et rose percent tuesday details tax proposal reported first wall street journal it largest gain fund six weeks among best performers sector year shell mainstream partners tallgrass energy partners percent plains all american pipeline genesis energy percent percent year date respectively politicsnews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: Trump's tax cut proposal shines light on MLPsNEW YORK/HOUSTON (Reuters) - The Trump administration’s proposal to slash tax rates on so-called pass-through businesses would deliver a windfall to investors in master limited partnerships and could offer a much-needed lift to this niche segment of the energy market. The tax plan outline released on Wednesday by U.S. President Donald Trump would sharply slash business taxes and discount the rate on overseas corporate profits brought back into the United States. The proposed changes include a cut to the top tax rate on pass-through businesses to 15 percent from the current rate of up to 36.9 percent. Pass-throughs get that name because taxes are not paid by the business itself but pass through to their owners’ individual taxes, at that rate. The change would largely benefit owners of private businesses, but U.S. stock market investors holding shares of master limited partnerships, or MLPs, would receive the same treatment. MLPs build the pipelines and storage tanks and are a common corporate structure in the oil and gas infrastructure sector.  “If the average rate (for MLP investors) is in the 30s, reducing it to 15 percent would be tremendously attractive,” Robert Willens, president of tax and accounting advisory firm Robert Willens LLC, said on Wednesday.  He said if the cuts come through they would make MLPs “the most attractive investment from a tax point of view.” Mike Bresson, a tax partner with the law firm Baker Botts in Houston said Trump’s proposed change would enhance an already-superior tax structure enjoyed by MLPs. “They’re talking about giving MLPs the same 15 percent tax rate that corporations get, so that would actually expand the benefits of MLPs over corporations,” Bresson said.  “The devil is in the details and we haven’t seen them.” MLPs have broadly underperformed the wider stock market over the past several years, largely due to the weakness in oil prices. The energy sector was pummeled as crude prices tumbled from above $100 per barrel in mid 2014 to below $30 early last year. They only recently stabilized at around $50 for U.S. oil. “There has been a gradual improvement in MLPs now that energy prices have stabilized. It’s still a decent place to invest even without the tax cut,” said Bryant Evans, portfolio manager at Cozad Asset Management in Champaign, Illinois. “There should be an almost immediate bounce (in price) once the proposal is solid. It should create more demand for MLP stock in general. But beyond an immediate bounce, it all goes back to how their businesses are doing.” Even with their above-average dividend yields, MLPs have lagged the S&P 500’s total return in the last year by around 240 basis points.  MLP stocks - more specifically, units - are up as a group so far this year, with the Alerian MLP ETF up 1 percent, though they have fallen 2.1 percent since Trump took office - even as his administration has been more friendly to sector projects like the Keystone XL Pipeline and the Dakota Access Pipeline. The ETF rose 0.8 percent Tuesday as details of the tax proposal were reported first by the Wall Street Journal. It was the largest gain for the fund in six weeks. Among the best performers in the sector this year are Shell Midstream Partners and Tallgrass Energy Partners, both up by more than 11 percent in 2017, while Plains All American Pipeline and Genesis Energy are down 5 percent and 9 percent year to date, respectively. politicsNews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: trump tax cut proposal shines light mlpsnew reuters the trump administration proposal slash tax rates businesses would deliver landfall investors master limited partnerships could offer lift niche segment energy market the tax plan outline released wednesday president donald trump would sharply slash business taxes discount rate overseas corporate profits brought back united states the proposed changes include cut top tax rate businesses percent current rate percent get name taxes paid business pass owners individual taxes rate the change would largely benefit owners private businesses stock market investors holding shares master limited partnerships maps would receive treatment maps build pipelines storage tanks common corporate structure oil gas infrastructure sector if average rate map investors reducing percent would tremendously attractive robert willing president tax accounting advisory firm robert willing llc said wednesday he said cuts come would make maps attractive investment tax point mike reason tax partner law firm baker boats houston said trump proposed change would enhance tax structure enjoyed maps they talking giving maps percent tax rate corporations get would actually expand benefits maps corporations reason said the devil details seen maps broadly underperformed wider stock market past several years largely due weakness oil prices the energy sector plummeted crude prices stumbled per barrel mid early last year they recently stabilized around oil there gradual improvement maps energy prices stabilized it still decent place invest even without tax cut said bryant evans portfolio manager could asset management campaign illinois there almost immediate bounce price proposal solid it create demand map stock general but beyond immediate bounce goes back businesses even dividend yields maps tagged s p total return last year around basis points map stocks specifically units group far year american map et percent though fallen percent since trump took office even administration friendly sector projects like keystone xl pipeline dakota access pipeline the et rose percent tuesday details tax proposal reported first wall street journal it largest gain fund six weeks among best performers sector year shell mainstream partners tallgrass energy partners percent plains all american pipeline genesis energy percent percent year date respectively politicsnews