The optimism among American companies about the future of the economy under a Trump administration appears to still be quite strong. A number of sizeable stock buybacks is one indicator of the private sector’s growing confidence.

According to research conducted by Goldman Sachs Group Inc. (GS), American companies have increased their share repurchases by nearly two-thirds from Dec. 1 to Dec. 16 when compared with the same period last year. The investment bank estimates that next year the aggregate size of buybacks will increase by as much as 30%, as reported by the Wall Street Journal. Mastercard Inc. (MA), Boeing Co (BA) and MetLife Inc. (MET) are just some of the companies that have announced billion-dollar buyback programs since the results of the election were called in early November. (For relating reading, see: Stock Buybacks: Breakdown.)

Larger Retained Earnings

Throughout his campaign, President-elect Trump had promised that his administration would create a much more friendly business environment that would foster more economic growth. He intends on doing so by mainly slashing corporate taxes and losing federal regulations on a number of industries. While many analysts have already predicted a softening in corporate revenues for 2017, Trump’s plan, if implemented, could very well keep retained earnings virtually unchanged or even higher. Less taxes will ultimately leave companies with more cash on hand to do things that increase shareholder value like carrying out stock repurchases. (For more, see also: Is a Big Stock Buyback Coming?)

Repatriation Tax Holiday

According to the New York Times, American corporations have well over $2 trillion worth of untaxed profits in foreign jurisdictions. Trump hopes to incentivize these companies to repatriate this money into the United States with a one-time flat 10% tax rate. A repatriation of such magnitude would likely further encourage companies, especially tech companies who have billions of dollars overseas like Apple Inc. (AAPL), Microsoft Corp. (MSFT), Cisco Systems Inc. (CSCO) and Oracle Corp (ORCL), to repurchase their shares. Goldman predicts that next year S&P 500 companies will repatriate about $200 billion, and out of that amount $150 billion will be spent on buybacks alone.

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