Corporate Tax Reform: A Catalyst for Shared Growth and Pension Security
February 2, 2018
UPS strongly believes the lower corporate tax rate is good news for its people, its customers and the U.S. economy at large.
The new corporate tax rate for UPS of approximately 24 percent will help UPS expand and accelerate investments in UPS’s network, technology, transportation fleets, facilities and value-generating customer services, which will further stimulate job creation inside UPS and among suppliers.
For example, UPS is making more than $12 billion in investments to expand the company’s Smart Logistics Network, significantly increase pension funding to help secure retirement benefits and position the company to further enhance shareowner value – this is a direct extension of the Tax Cuts and Jobs Act.
Economic analysts agree that tax reform immediately makes American companies more competitive on the global stage, which can only benefit our employees, our shareholders and the communities where we work and live.
The tax-reform boost will also advance UPS’s multi-year capital investment program, increasing capacity and enhancing operating efficiency – while better positioning our employees to thrive.
UPS plans to raise future capital spending well above its previously committed 6-to-7 percent of annual revenue. UPS will invest an additional $7 billion over three years to construct and renovate facilities, acquire new aircraft and ground fleet vehicles and enhance the information technology platforms required to support and expand the network, manage the business and power new customer solutions.
UPS also recently made a $5 billion tax-qualified contribution to the company’s three UPS-sponsored U.S. pension plans, further securing retirement benefits on behalf of union-represented and union-free employees eligible for UPS-funded pensions.
By responsibly deploying new net income, UPS reinvests in maintaining a strong company that can reward its employees with industry-leading compensation – helping ensure it remains an employer that offers high-quality jobs.
We believe we have the best workforce in the industry. That’s why our small package drivers have the best wages in the business, and our inside employees earn at or above local market rates and are provided comprehensive benefits – it would be difficult to find a better deal in our industry than the one provided to UPS employees.
Corporate tax reform is an important first step among many necessary reforms, including new infrastructure investments, developing a skilled workforce for the jobs of tomorrow, reducing regulatory burdens and expanding trade through comprehensive agreements that help simplify the connections in the global economy.
UPS already provides about 260,000 high-quality, full- and part-time Teamster-represented jobs serving nearly every community across the country and will continue to be an engine for growth throughout the U.S.
We will work to ensure the benefits of tax reform reverberate up and down supply chains and across our entire economy.
February 2, 2018