Doomsday Tax Bill Prompts ExxonMobil, Honeywell To Repatriate Billions, Boost 401ks

Posted: Jan 30, 2018 12:45 PM
Doomsday Tax Bill Prompts ExxonMobil, Honeywell To Repatriate Billions, Boost 401ks

The tax reform package that President Donald Trump signed into law last December has left a trail of destruction in its wake—and by destruction, I mean a better job creating and investing climate. Over 250 companies have doled out bonuses to over three million workers. Employee investment has increased, 401k matches have gone up, philanthropic giving boosted, and it’s all because of Trump’s tax bill, which the Left said would bring about the next apocalypse. Over 90 percent of middle class Americans stand to benefit from this tax bill. Sounds like good news to me. 

Guy has been documenting companies and employees that are benefitting from this tax bill. Now, there are two more: Honeywell and ExxonMobil who plan to repatriate billions over a two-to-five year period respectively. Honeywell plans to bring some $7 billion back over the next two years, while increasing its 401k match for its employees, thanks to the GOP tax bill (via CNBC):

U.S. industrial conglomerate Honeywell International said on Friday that it expected to bring back at least $7 billion of the $10 billion in cash held overseas in the next two years, taking advantage of the newly enacted tax law.

Shares of Honeywell, which makes everything from jet engines to thermostats, rose as much as 1.2 percent in morning trading to hit a record of $163.85.

The cash hoard will help fuel Honeywell's M&A strategy under new Chief Executive Darius Adamczyk, who is looking to bolster its core operations such as aerospace following the spin off its home and transportation businesses later this year.

Darren Woods, Chairman and CEO of ExxonMobil, said the new tax bill has allowed the energy company to bring some $50 billion back into the U.S. over a five-year period to expand its U.S. investments:

At ExxonMobil, we plan to invest more than $50 billion over the next five years to expand our business in the United States. These investments are underpinned by the unique strengths of our company and enhanced by the historic tax reform recently signed into law.

In fact, as you have probably seen, several companies have announced plans to invest here at home, partly as a result of tax reform, which among other things reduced one of the highest corporate tax rates in the developed world.

These positive developments will mean more jobs and economic expansion across the United States in a myriad of industries.

And it will complement the substantial capital spending in the United States that ExxonMobil has teed up in the coming years.

For instance, we will be investing billions of dollars to increase oil production in the Permian Basin in West Texas and New Mexico, expand existing operations, improve infrastructure and build new manufacturing sites. This will create thousands of jobs, strengthen the U.S. economy and enhance energy security.

And how do Democrats respond to the booming economy and companies re-investing in their employees? They say the $1,000+ bonuses are “crumbs.” Some companies are doling out bonuses up to $3,000, by the way. If that’s the spin, well, it just shows how out of touch the limousine liberals of the Democratic Party have become.