ExxonMobil credited the new tax-cut legislation on Monday as it announced plans to invest more than $50 billion in the United States over the next five years as part of an expansion of its business.
Darren Woods, chairman and CEO of the oil and gas company, announced in a blog post that the investment will increase oil production in the Permian Basin in West Texas and New Mexico, expand and improve existing operations and build new manufacturing sites in the United States.
“These are quality investments for our shareholders that are made even better by tax reform,” Woods wrote. “That’s good news if you‘re among the millions of Americans who own ExxonMobil stock directly or have indirect ownership through the many public pension funds, mutual funds or exchange traded funds that are ExxonMobil owners.”
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A number of corporations have announced plans for investments, or bonuses or raises to employees that they have linked to the tax bill. FedEx, Home Depot and Starbucks all announced this month that they would be handing out benefits to their employees.
The centerpiece of the legislation was a cut in the corporate tax rate from 35 percent to 21 percent. Davis praised the tax cut as reducing “one of the highest corporate tax rates in the developed world.”
Democrats have argued that the tax-cut bill will add to the deficit, and that most Americans will not see any significant benefits from the bill.