A Boon for the US Economy
On December 20th, 2017, the US Congress passes the first tax reform bill since 1986. Upon this momentous event, the U.S markets and stocks finished at the highest they have ever had this year. Two of which the Dow Jones Industrial Average â€œrose 55.64 points to 24,782.29 and traded more than 100 points higherâ€, and â€œS&P 500 gained .2%Â to 2,684.57, with financial and energy rising .9% and 2.1%â€. This increase in the stock market is showing great promises that companies are beginning to liquefy assets, and invest more in their specific departments.
In addition following the tax reform bill several companies began announced that they would be providing a higher pay, and bonuses to several of their employees. This included companies such as Comcast, AT&T, Boeing, and Wells Fargo, which announced that they would give $1000 bonuses to over 200,000 employees. They have also announced several investments of millions of dollars on new departments and employee benefits. In the case of Boeing, they stated that they â€œwould spend $300 million because of the tax planâ€ and Comcast announced that in addition to the $1000 bonuses, â€œthey expect to spend well in excess of $50 billion on infrastructure over the next 5 years.
While only a hand full of companies have declared to invest for further expansion and compensation most CEOâ€™s believe that the tax cut will end up boosting the economy as more trust is built between investors and the markets. According to the CEO of Adrian Day Asset Management, â€˜There is real hope that the tax cuts will boost the economy, which is what they were intended to doâ€™, this will then result in more and more companies investing in new departments, and creating more higher paying jobs.
Author: Angel Veloz, Sabre88 LLC
Editor’s note:Â Original Sources