Tax cuts benefits dwarfed by technology and misplaced policies according to Milken conference speakers

Dollar surges

The gains from the tax cuts which was passed by the United States Congress in December have stimulated risk taking within corporate America, as stated by some of the speakers at the yearly Milken Institute Global Conference which was held in California on Monday.

Vista Equity Partners CEO and founder Robert Smith stated that the tax cuts in the U.S. has caused several companies to be teeming with cash and are seeking for opportunities to utilize their resources to hopefully make a major shift in their respective market places as shown by two of the largest mergers in telecom and energy.

Sprint Corp and T-Mobile U.S. Inc had agreed to a $26 billion all stock merger in late Sunday, believing that they could catch the attention of the skeptical U.S. regulators.

The two companies see the merger as an opportunity to make thousands of jobs and aid the U.S. overtake China in developing the 5G next generation network.

Marathon Petroleum Corp has agreed to acquire rival Andeavor for over $23 billion Monday, marking the largest ever tie up between United States oil refiners.

This would provide the combined company access to the expanding export markets and a global presence.

Citigroup Inc CEO Michael Corbat was also optimistic about the economic outlook and stated that the tax cuts have yet to reach through many businesses.

U.S. Representative and the leader of the Republican-majority in the House Kevin McCarthy stated that the tax reform has been a significant help for Americans.

Although comments and the overall outlook for the economy is fairly positive, the fast rate of change in technology is spawning challenges for several U.S. businesses and can drive political policies that can weaken business confidence.


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