Siemens And The Financial Sector Defend Trump’s Tax Cuts

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Siemens CEO Joe Kaeser believes that President Trump’s tax overhaul could bring positive changes to the country, particularly for the job sector. Kaeser asserts that more jobs will be created from the tax cuts due to companies having more money to spend on innovation and expansion.

“That’s why I’ve been congratulating the American president for his tax reform,” Kaeser said. “I didn’t congratulate him for his first year in office or anything else but that I believe was a job well done.”

Kaeser believes that there’s nothing wrong with President Trump’s tax cuts because even the average American can benefit well from it. As for the rich, the tax cuts could offset losses that companies experienced last year. For Siemens, weak equipment demand from the energy sector led to its Q4 revenue decline in 2017.

Siemens has over 60,000 employees in the U.S. alone. The company expects to have a 27% to 33% tax rate for the fiscal year of 2018.

Financial sectors approve of tax cuts

President Trump’s tax overhaul, which was approved in 2017, was proposed in the hopes of stimulating consumer spending. The new law would allow businesses to enjoy a tax cut from 35% to 21%.

There have been speculations about tax cuts ever since President Trump came into power. Nadex states that Wall Street saw this coming, which led to the Dow having 63 record highs since President Trump’s victory. Apart from the positive speculation from Wall Street, other companies are also optimistic about the tax cuts, saying that the move may attract investors from other countries in the next 12 – 18 months.

Blackstone chief executive Steve Schwarzman, NASDAQ’s CEO Adena Friedman, and Credit Suisse head Tidjane Thiam were also positive toward the U.S. being the place to invest in the next couple of months.

“I think we’re going to find a very big positive surprise,” said Schwarzman, “There are companies all around the world who are looking at the U.S. now and saying, ‘This is the place to be in the developed world.’”

President Trump promised that the tax cuts will get better in a tweet he sent on February 12. He said that approximately 4.2 million hard-working Americans have already received a large bonus/pay increase because of the tax cuts.

Positive ratings for President Trump

After a well-received State of the Union Address in February, President Trump’s approval rating soared to 49%. It was the highest rating that the president received since June 2017.

President Trump’s State of the Union address was widely received as a success, with 3/4 of the viewers approving of what they had heard. One of the topics that he talked about in his speech was the tax cuts, which he stated would bring much wealth from abroad back to American shores.

President Trump responded to his high ratings on Saturday by taking a jab at the media, which seem to have ignored the important feat.

Last month, the president only had a 44% approval rating among registered voters.

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