Tags: waste management | corporate tax rate | re-investing savings

Waste Management Re-invests Tax Reform Savings

Waste Management Re-invests Tax Reform Savings
(Scott Halleran/Getty Images)

By    |   Friday, 16 February 2018 12:06 PM

Waste Management is taking nearly all of the money it saved because of the lower corporate tax rate and reinvesting it back into the economy, CEO Jim Fish said Friday.

Fish appeared on CNBC's "Squawk Box" and discussed the tax reform legislation that was signed into law before Christmas.

"We're a pretty good barometer for the economy because we see it on every segment of the economy, whether it's the industrial side or services side," Fish said. "Right now, we're seeing a very good economy.

"We grew our revenue by over 6 percent last year, organically, in a 2 to 3 percent economy. We like the economy. We like what tax reform has done for us so far."

Fish said the Houston-based company paid slightly over 36 percent of its 2017 revenue on federal taxes, a figure he said will drop to roughly 26 percent under the new guidelines.

"The benefit to us was about $275 million," Fish said. "We gave about $70 million back to employees through a bonus, and then we're spending an extra $150 [million] by accelerating some spending on trucks and some IT spends. So about three-quarters to 80 percent of it's gonna go back into the economy. And then we think it will benefit shareholders on the back end of the cycle."

The Dow Jones Industrial Average rose by 25 percent in 2017 and, in the wake of the tax law's passage, had a strong start to 2018. The market has been volatile in recent weeks, however, but Americans don't seem too worried about the losses.

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Waste Management is taking nearly all of the money it saved because of the lower corporate tax rate and reinvesting it back into the economy, CEO Jim Fish said Friday.
waste management, corporate tax rate, re-investing savings
262
2018-06-16
Friday, 16 February 2018 12:06 PM
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