About a week after being chosen as this year’s chair for the Federal Reserve Bank of Atlanta, AutoNation chairman, chief executive officer and president Mike Jackson highlighted how much the dealer group should benefit from federal tax reform recently signed by President Donald Trump.
On Tuesday, AutoNation announced that it expects a benefit of approximately $41 million in the fourth quarter of 2017, or approximately $0.45 per share, due to the recent tax reform bill and the one-time impact on its deferred tax liability.
AutoNation also anticipates a benefit of approximately $75 million to $100 million, or approximately $0.80 to $1.10 per share, for the full year 2018, resulting from the decrease in the corporate federal tax rate.
AutoNation said it will use the savings from tax reform to invest in its future and its employees, through enhancing its benefits programs, including launching an innovative cancer program to assist employees and family members who were recently diagnosed with cancer, and investing in progressive training programs that will allow its associates to better serve its customers and drive their career advancement.
The company also plans to accelerate its brand extension strategy as well as further expand its Drive Pink initiatives.
“We are excited about the pro-growth environment for business in the U.S., which includes the recently signed tax reform bill,” Jackson said.
“As a U.S.-based company, our employees, customers and shareholders will benefit greatly from a reduction in our corporate tax rates,” he continued.
Jackson certainly is familiar with federal financial policy as a part of his commitment to the Atlanta Fed, which covers the Sixth Federal Reserve District and includes Alabama, Florida and Georgia, and portions of Louisiana, Mississippi and Tennessee.
The Atlanta Fed has branch offices in Birmingham, Ala., Jacksonville, Fla., Miami, Nashville, Tenn., and New Orleans.
Each Reserve Bank has a nine-member board of directors. The Board of Governors in Washington, D.C. appoints three of these directors and each year designates one of its appointees as chair and a second as deputy chair.
Serving as the Atlanta Fed deputy chair is Myron Gray, who is president of U.S. operations for United Parcel Service (UPS).