UPS PROJECTED PROFIT INCREASE DUE TO NEW TAX PLAN

[Mugarolla]

fedex is expected to save 1.5 billion, ups will be more

That is not from the tax decrease alone.

FedEx may get $1.5 billion boost from tax cut

"But the shipping giant told investors in its earnings release that its annual profits for fiscal 2018 could increase by $4.40 to $5.50 a share, mainly due to a change in how it values deferred tax liabilities as well as the cut in the corporate tax rate to 21%."

And the lower corporate tax rate....

"The lower tax rate on its own will lead earnings to be as much as $1 a share higher, FedEx said."

This will result in a $268M increase in profit, not $1.5B on its own.

UPS expects a higher increase, $650M, so there you go.

 

[retiredTxfeeder]

Many years ago, before contract time, UPS would go out and buy planes, PC's and other equipment, pay cash and then cry poor pitiful me. "We don't have the money to pay for the stuff you want in negotiations."

 

[IVE GOTTA PACKAGE 4U]

Many years ago, before contract time, UPS would go out and buy planes, PC's and other equipment, pay cash and then cry poor pitiful me. "We don't have the money to pay for the stuff you want in negotiations."

Now they are publicly traded. Can't pull that crap now.

 

[East coast navy]

Not even close.

You do realize that the Corporate Tax Rate is based on profit, not gross income, don't you?

In 2016, they paid roughly $1.7B in Corporate Tax, roughly 34%

Dropping that rate to the new Corporate Rate for 2018, 21% will save UPS roughly $650M a year.

That is nothing to sneeze at, but nowhere near your 8 to 10 billion a year, but enough to give every employee a $1500/yr bonus, if they so choose.

This is not counting the 30% tax break they get from every truck they buy from them bing forced to get rid of all the non-def fuel trucks. It’s also not including all the property taxes they pay and now can work out at the end. They will save a lot more then what you guys are saying. I would not talk about this anymore because they want you to think they only pay a small amount in taxes.

 

[Mugarolla]

This is not counting the 30% tax break they get from every truck they buy from them bing forced to get rid of all the non-def fuel trucks. It’s also not including all the property taxes they pay and now can work out at the end. They will save a lot more then what you guys are saying.

No argument here, but these have nothing to do with the new tax plan and they were going to save some of this money anyway without the new tax plan.

I am not going to blow smoke up peoples and say that UPS will save $10B on taxes so we need a $10/hr increase and a $3000/mo bump in pension.

They are going to save $650M, so we do deserve a nice raise, or at least the possibility of UPS bailing out some, or all, of the pension funds.

This $650M is a year, and every year. This will go a long way toward failing pension funds.

 

[East coast navy]

I’m not blowing smoke or talking about the tax bill. I’m taking about the company comes in with lots of numbers saying what you are saying at negotiations. They company posts their corporate tax info but nothing on what the pay on everything else and what the can deduct.

 

[Mugarolla]

I’m not blowing smoke or talking about the tax bill. I’m taking about the company comes in with lots of numbers saying what you are saying at negotiations. They company posts their corporate tax info but nothing on what the pay on everything else and what the can deduct.

I agree. But we do KNOW what they will be saving just due to the new law.

This is equivalent to a nice raise or a fixed pension system, or both.

Let them cry poor all they want. We know this for a fact.

 

[upschuck]

I agree. But we do KNOW what they will be saving just due to the new law.

This is equivalent to a nice raise or a fixed pension system, or both.

Let them cry poor all they want. We know this for a fact.

No raise because of the tax cut.....because when taxes go back up, everyone would cry when they get a pay cut. Reminiscent of many pension's problem.

 

[East coast navy]

I agree. But we do KNOW what they will be saving just due to the new law.

This is equivalent to a nice raise or a fixed pension system, or both.

Let them cry poor all they want. We know this for a fact.

I disagree. Watch how much stock they will pay to them selves and the investors. This is the perfect time to attack the company on PTers pay and the FTers

 

[Mugarolla]

No raise because of the tax cut.....because when taxes go back up, everyone would cry when they get a pay cut. Reminiscent of many pension's problem.

I agree, and really can't complain about our wages. So, fix the 4 year progression and fix the pension, along with our obligatory $0.75 raise.

I disagree. Watch how much stock they will pay to them selves and the investors.

We know how much more they will be making. They can't hide that.

If they say they can't pay us more because they are paying themselves more, or the shareholders more, we have the option of striking to get "our share." per se.

 

[East coast navy]

I agree, and really can't complain about our wages. So, fix the 4 year progression and fix the pension, along with our obligatory $0.75 raise.



We know how much more they will be making. They can't hide that.

If they say they can't pay us more because they are paying themselves more, or the shareholders more, we have the option of striking to get "our share." per se.

I can agree on that.

 

[wide load]

They were paying up to 35% now will be 21%. That’s 14% savings. 14% is .14x60 billion(2016 final Revenue)= 8.4 billion.

They don’t pay on revenue

 

[Coldworld]

I can agree on that.

I think we should be getting 1.00 to 1.50 raise a year on this next contract.... both part time and full time members... I don’t believe that is being greedy....especially with the long hours they want us to work

 

[3 done 3 to go]

I think we should be getting 1.00 to 1.50 raise a year on this next contract.... both part time and full time members... I don’t believe that is being greedy....especially with the long hours they want us to work

I just want the money the union sucked us dry for the pension. Even us out with the rest of the nation. Also a pipe dream they save all pensions

 

[MenInBrown]

fedex is expected to save 1.5 billion, ups will be more

Shouldn’t UPS savings be around $8 billion annually?

 

[Jkloc420]

Shouldn’t UPS savings be around $8 billion annually?

dont know, just putting what fedex said they will save

 

[badpal]

No argument here, but these have nothing to do with the new tax plan and they were going to save some of this money anyway without the new tax plan.

I am not going to blow smoke up peoples and say that UPS will save $10B on taxes so we need a $10/hr increase and a $3000/mo bump in pension.

They are going to save $650M, so we do deserve a nice raise, or at least the possibility of UPS bailing out some, or all, of the pension funds.

This $650M is a year, and every year. This will go a long way toward failing pension funds.

I agree ,at least with UPS knowing a bit about the tax situation going into future, I think its a positive going into contract talks. And I do believe they will help with some of the in trouble pensions funds.

 

[Mugarolla]

Shouldn’t UPS savings be around $8 billion annually?

Nope. Around $650 million. Corporate tax is paid on profit, not revenue.

UPS profit is around $6B, what they pay Corporate tax on. After tax, their profit is around $4.5B, give or take.

They do not pay Corporate tax on their $60B in revenue.

dont know, just putting what fedex said they will save

Read the article again. FedEx stated that they expect around $228 million from the Corporate tax reduction.

The headline you say was misleading, typical.

I think its a positive going into contract talks.

As do I

And I do believe they will help with some of the in trouble pensions funds.

At least possibly low interest, or no interest loans, something that has already been proposed by UPS that the government should do.

 

[Moneythehardway]

Bottom line is this union has no reason not to get us a STRONG contract with this perfect storm of momentum on our side (Record profits, Tax cuts, ecommerce revenue growing year over year etc..) with little to no concessions.

Anything less is a showing of how weak this union would have become.

 

[East coast navy]

They don’t pay on revenue

I know. I calculating all the other pay outs and deductions that are not open to the public. It might be off on the high end but don’t think that the are only going to Dave what you are saying. They want you to think that.