Industry Sectors React Favorably to Tax Bill

SMA President Philip Bell said it is now time to turn to resolving the Section 232 investigation. “With Senate passage of the tax bill, it is now time for the administration to pivot and focus on the pledges it has made to 21st century steelmakers. With taxes completed, it is time to finish the Section 232 investigation and release the report on or before the statutory deadline in mid-January. This will give the president ample time to review the report and propose remedies. Dealing with unfair and illegal trade that threatens our national security is vital. A positive 232 outcome, coupled with tax reforms, will help SMA members continue to build businesses, lives and communities.”

The Association of American Railroads says the tax reform will improve global competition for freight railroads and their customers. “Key provisions, namely the reduction of the corporate tax rate and full and immediate expensing for five years, will help support private investment across the 140,000-mile rail network and the entire economy,” said Edward R. Hamberger, AAR President and CEO. “We look forward to moving on to other policy debates next year that affect our industry and our customers, especially in ensuring that NAFTA remains in place, in making the short line tax credit permanent and in comprehensively addressing U.S. infrastructure and transportation systems.”

The American Trucking Associations said the president, House and Senate are to be commended for putting the American people first. “America’s economic engine has been ignited,” said ATA President and CEO Chris Spear. “President Trump has said that ‘when trucks are moving, America is growing.’ With his signing of this bill into law, there will be more trucks on our roads, making the deliveries fueled by an expanding economy.”

“This bill is a win not just for trucking, but for our entire economy,” said ATA Chairman Dave Manning. “The relief this bill provides will enable companies to invest in their growth by hiring new employees or purchasing new equipment. That creates an economic stimulus with positive ripple effects that reach far and wide.”

The construction industry worked with Congress in a rigorous lobbying campaign to provide a better outcome for the construction industry. Stephen Sandherr, CEO of the Associated General Contractors of America, said: “Today, Congress passed comprehensive tax reform legislation that will lower rates, spur economic growth and impact construction businesses for years to come. That stated, there is still much work to be done in our nation’s capital in the New Year. Though Congress missed an opportunity to address the long-term solvency of the Highway Trust Fund via tax reform, we remain focused on ensuring that this administration keeps its promise to rebuild the nation’s infrastructure. And, we are committed to efforts to modernize multi-employer pension plans for the future, among other priorities for the industry.”

Although U.S. steel mills have not offered commentary on the tax bill, Australian company BlueScope Steel said the tax reform bill will benefit its U.S. operations, North Star BlueScope, BlueScope Buildings North America and Steelscape. “BlueScope expects its U.S. earnings will benefit through a lower federal tax rate, with an anticipated 7 percent decrease in FY 2018, and 11 percent decrease thereafter. The benefit will be partly offset by a toll charge on foreign earnings, which is not expected to be material,” said the company in its half-year guidance.

Not everyone is as assured that the tax cuts for business will provide the economic benefit touted by the administration. A recent survey of U.S. CEOs revealed many plan to use the tax windfall to buy back stock and increase dividends to shareholders.

The AFL-CIO called the tax bill a “scam” that will “directly benefit the super-rich” and lead to Social Security, Medicaid and Medicare cuts to pay for the $1.5 trillion deficit the tax plan will create. “The average household making less than $75,000 will pay more in taxes by the year 2027. In all, 70 million households making less than $100,000 eventually will pay more,” said the AFL-CIO. “Working people want fair tax and budget policies that raise the revenue to invest in American priorities such as good jobs, quality infrastructure, public education and essential benefits.”