Economy will benefit from Tax Reform

by Laura Ehrenberg-Chesler on January 26, 2018

in Employment,manufacturing,taxes,United States of America

Many companies are now announcing various ways the new tax reform bill will stimulate capital spending and therefore the economy. This is helping to lift industry and their employees beyond the immediate bonuses. From well known companies like Apple and Kimberly-Clark to lesser known companies like Amicus Therapeutics, there is a rush to bring money back to America as well as to build and invest here.

From today’s “Wall Street Journal”:Specialty drugmaker Amicus Therapeutics Inc. has decided to spend as much as $200 million on a new production facility in the U.S. instead of Europe. Kimberly-Clark Corp. , maker of Kleenex tissues, is spending hundreds of millions of dollars to put new machinery in one of its U.S. factories, even as it closes others and cuts thousands of jobs. Aramark , the catering and uniform giant, expects to save nearly $500 million on two recently completed acquisitions.

The rapid adaptation goes well beyond the early announcements of $1,000 bonuses or minimum-wage increases for rank-and-file workers. And this is just the beginning. The U.S. Treasury and the Internal Revenue Service have offered guidance on just a few of the two dozen provisions in the law that will likely require formal regulations. Companies must navigate complex rules imposing minimum taxes on foreign income, tax breaks for partnerships, faster deductions for capital spending and new limits on interest and operating-loss deductions.”

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