Which Trump Agenda Items Are Companies Talking About With Wall Street?
Chart of the Day

Which Trump Agenda Items Are Companies Talking About With Wall Street?

Chart of the Day
By Yuval Rosenberg

Hamilton Place Strategies, a public affairs consulting firm, analyzed transcripts of earnings calls by publicly traded U.S. companies over the last three quarters. They found that tax reform was the policy issue companies discussed most on those calls with Wall Street analysts — but that mentions of the subject dropped by 38 percent from the fourth quarter of 2016 to the second quarter of 2017. Overall, the percentage of earnings calls mentioning government or policy issues fell from 41 percent to 16 percent. Health-care reform saw the largest increase.

Does this mean that businesses have given up on tax reform this year? Perhaps. More likely, it's simply the result of a lack of action on the tax overhaul. Hamilton Place notes that mentions of tax policy peaked in February just after the Senate Finance Committee advanced Treasury Secretary Steven Mnuchin's nomination and have spiked after other tax-related announcements. So mentions of tax reform on earnings calls could surge again the fall.

One other note about what businesses have been discussing: Calls mentioning President Trump fell by 84 percent from January to late August.

Economists See More Growth Ahead

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By The Fiscal Times Staff

Most business economists in the U.S. expect the economy to keep chugging along over the next three months, with rising corporate sales driving additional hiring and wage increases for workers.

The tax cuts, however, don’t seem to be playing a role in hiring and investment plans. And the trade conflicts stirred up by the Trump administration are having a negative influence, with the majority of economists at goods-producing firms who replied to the most recent survey by the National Association for Business Economics saying that their companies were putting investments on hold as they wait to see how things play out. 

New Tax on Non-Profits Hits Public Universities

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Turner Construction Company
By The Fiscal Times Staff

The Republican tax bill signed into law late last year imposed a 21 percent tax on employees at non-profits who earn more than $1 million a year. According to data from the Chronicle of Higher Education cited by Bloomberg, there were 12 presidents of public universities who received compensation of at least $1 million in 2017, with James Ramsey of the University of Louisville topping the list at $4.3 million.  Endowment managers could also get hit with the tax, as could football coaches, some of whom earn substantially more than the presidents of their institutions.

Deficit Jumps in Trump’s First Fiscal Year

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By Michael Rainey

The federal budget deficit rose by 16 percent in the first nine months of the 2018 fiscal year, which began last October. The shortfall came to $607 billion, compared to $523 billion in the same period the year before, according to a U.S. Treasury report released Thursday and reported by Bloomberg. Both revenue and spending rose, but spending rose faster. Revenues came to $2.54 trillion, up 1.3 percent from the same nine-month period in 2017, while spending came to $3.15 trillion, up 3.9 percent.

Where’s the Obamacare Navigator Funding for 2019, PA Insurance Commissioner Asks

By The Fiscal Times Staff

Pennsylvania’s insurance commissioner sent a letter this week to Health and Human Services Secretary Alex Azar and Centers for Medicare and Medicaid Services (CMS) Administrator Seema Verma requesting that they “immediately release the funding details for the Navigator program for the upcoming open enrollment period for 2019.” Navigators are the state and local groups that help people sign up for Affordable Care Act plans.

“In years past, grant applications and new funding opportunities were released by CMS in April, CMS required Navigator organizations to apply by June and approved applications and new funding by late August,” Pennsylvania’s Jessica Altman wrote. “The current lack of guidance has put Navigator organizations – and states - far behind in their planning and creates an inability for the Navigator organizations to design a successful plan for helping people enroll during the 2019 open enrollment period.”