Bah Humbug for the working class.
Hoping to boost the stock price no doubt, Daimler on Christmas Eve is saying there will be a significant increase of Group Net Income as a result of Trump’s welfare for the wealthy plan. The law rushed through without public hearings was signed by Trump who was falsely calling it a comprehensive tax reform (“Tax Cuts and Jobs Act”), includes the reduction of the nationwide federal corporate income tax rate from 35% to 21%, starting January 01, 2018 , while increasing the budget deficit by $1.5 trillion next year, and eliminating 18 million working-class Americans from healthcare benefits.
“Due to the broadly based U.S. industrial and financial services business, combined with a material value added, Daimler – similar to many other local U.S. companies – benefits from the decided tax reform.“
At the U.S. subsidiaries of Daimler, the deferred tax liabilities exceed the deferred tax assets — both calculated with the nationwide federal corporate income tax rate of 35%. The reduction of the federal corporate income tax rate from 35% to 21% requires the revaluation of the net deferred tax liabilities and results in an income tax benefit increasing the Net Income of the Group for the year 2017 by approximately €1.7 billion. The positive income tax benefit will not impact the Free Cash Flow of the Industrial Business or the Group EBIT for the year 2017.
Daimler also says that against the windfall from the U.S. law, it currently expects other issues not connected will increase the tax expenses and will lead to an overall increase of Group Net Income by approximately only €1 billion net.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
