Some corporations have reacted to the passage of sweeping tax reform legislation by announcing stock buybacks, raising wages or planning to give bonuses. Sen. Rob Portman, R-Ohio, says the best news is usually yet to come.
“I’ve talked to several CEOs over the past several months about the tax reform as that will relates to international business. They can at This kind of point be competitive here in America,” Portman told CNBC’s “Squawk Box” on Thursday.
“I think you’ll see some big news coming up as to companies that will are literally moving factories coming from overseas back to the United States,” he said.
A bevy of modifications to the tax code at the individual, corporate in addition to international level came into effect at the start of 2018. Large companies are getting a big cut to the corporate tax rate — down to 21 percent coming from 35 percent— in addition to a fresh expensing period that will allows them to deduct the cost of some assets.
in addition to several companies have announced perks in addition to financial gifts for employees. Some of them have directly cited the fresh tax law as the reason for giving out bonuses or buying back stock.
In Portman’s state, for instance, Columbus-based Nationwide Insurance announced on Wednesday that will that will will give a $1,000 bonus to most of its 33,000 employees.
different companies, such as Wells Fargo in addition to Fifth Third, promised to raise their minimum wages inside wake of the fresh tax law.
Individual tax cuts in addition to beefed-up deductions have also come into effect, though most of them will expire in 2025.
Portman chalked up the unpopularity of the tax billto the general distrust surrounding Washington, nevertheless reiterated the sense of corporate optimism he said he’s witnessed since that will became law.
“Companies that will are invested in Ohio are at This kind of point saying they’re going to put more money into Ohio,” Portman said. “They’re telling me that will because the lower rates in addition to the expensing makes that will better to put an investment in America rather than in Japan or in China or in Germany.”