So far, 273 US companies have announced bonuses, rate hikes, and 401K match increases as a result of US President Trump’s tax reforms.
Just weeks after the federal government adopted the biggest tax overhaul in three decades, the effects are rippling through corner offices and boardrooms, with companies large and small dusting off once-shelved plans, re-evaluating existing projects and exploring new investment in factories and equipment. …
This is Just the Beginning
Tax reform when combined with deregulation, booming energy production spurring new manufacturing and industry, and a general increase in confidence at all levels — from consumers to executives to entrepreneurs — creates a better environment for new investment and economic growth.
This is what Trump was trying to explain to the Davos crowd. Here are a few of the things he told the world’s superwealthy and super-wannabes:
“When the United States grows, so does the world. American prosperity has created countless jobs around the globe and the drive for excellence, creativity and innovation in the United States has led to important discoveries that help people everywhere live more prosperous and healthier lives.”
“After years of stagnation the United States is once again experiencing strong economic growth. Consumer confidence, business confidence and manufacturing confidence are the highest they have ever been in many decades.”
“We have dramatically cut taxes to make America competitive.”
“There has never been a better time to hire, to build, to invest and to grow in the United States. America is open for business and we are competitive once again.”
… “In a stunning moment, one by one, European titans of industry from companies like Adidas, Siemens and Bayer went around the table to thank Trump for the passage of tax cuts and the easing of corporate tax burdens. Almost every CEO had a new U.S.-based investment or strategic business to announce.”
“The president of Siemens, Joe Kaeser, said, ‘since you have been so successful in tax reform we have decided to develop the next generation gas turbines in the United States.’ “
… Given what looks like a coming flood of foreign investment in the U.S., maybe “Make America Great Again” is the best kind of globalism there is.
All of this is precisely what the governments of China, Germany, and much of Europe were afraid of. As conditions for investing and doing business inside the US improve, more companies will move to North America and Foreign Direct Investment (FDI) going to the US will accelerate even faster. The stream of elite flight going to North America will turn into a flood, as entrepreneurs and the highly skilled calculate the new formulas for wealth and success.
Slowly, step by step, the cutting away of regulatory dead weight and trimming back taxation is beginning to have an effect on a US economy that had been actively poisoned by Obama-era sabotage for almost ten years. Watch and learn.