Will the new tax reforms prove to be a boon for the employment sector in the United States? Will it actually have a dramatic effect on jobs as promised by President Donald Trump and Republicans in the House of Representatives? It might be too early to predict anything, but the trend seen so far in the job sector this year shows there are reasons to cheer.
The Tax Cuts and Jobs Act, that came into effect Jan. 1, promised permanent tax break for corporations and temporarily cuts rates for individuals. According to the Committee on Ways and Means, the act will “help create more jobs, increase paychecks, and make the tax code simpler and fairer” for everyone.
Recently, the Fiat Chrysler Automobiles (FCA) announced its decision to move its Ram Heavy Duty truck production to the U.S. from Mexico. The company said Jan. 11 it will invest more than $1 billion to modernize its truck assembly plant in Warren, Michigan, and added it will create 2,500 new jobs at the factory.
The company credited the passage of tax reform, which cut the corporate rate from 35 percent to 21 percent, for the move.
“These announcements reflect our ongoing commitment to our U.S. manufacturing footprint and the dedicated employees who have contributed to FCA’s success,” Sergio Marchionne, chief executive officer of FCA, said in a press release. “It is only proper that our employees share in the savings generated by tax reform and that we openly acknowledge the resulting improvement in the U.S. business environment by investing in our industrial footprint accordingly.”
Trump responded to the move on Twitter.
In another such move, Toyota Motor Corp and Mazda Motor Corp said Jan. 10 they will build a $1.6 billion assembly plant in Huntsville, Alabama. The Japanese multinational automakers believe the joint initiative will be able to provide jobs to 4,000 people in the U.S., Reuters reported.
The plant will produce 300,000 cars and SUVs a year and the facility will come up on a 2,500-acre…