Kiddar Capital CEO Todd Hitt on Varney & Co:
"Tax Reform is More Than Just Bonuses"
February 1, 2018
Kiddar Capital CEO Todd Hitt explains how on Varney & Co., Fox Business, why tax cuts are more than just bonuses. Two words: expansion economics.
Varney: It was announced this morning that Lowes is going to offer bonuses up to $1,000 to 260,000 of its hourly employees, plus better benefits — so that list of people getting a bonus is now way beyond 3 million. I think that should be part of the mix.
Hitt: No question. Look, tax reform was huge. You know, President Obama couldn’t do that, President Trump got it done right away. It’s part of what I call expansion economics. I sent a letter to the President that laid out the pillars of expansion economics. One of them was tax reform. He got that done.
And you know Stuart, it’s not just bonuses. Those are huge, obviously — $1,000, $500, any amount of money in middle America’s pockets is huge for the economy and huge for those people. But it’s also changes in governance you see in private companies. So CEOs of companies now — and we have this in one of our portfolio companies — have stepped above, taken board spots, and can now look at new opportunities. And people underneath them are raised up. They’re now running the companies, they’re making more money, the company will do better because the CEO is now a Chairman and can expand the company through acquisitions and other choices that they make.
It’s more than just bonuses. There’s a lot more going on.
There’s also the issue, Stuart, of the 1099 employees that were part time. Now the company wants to invest in them and bring them in as full-time employees, which as you know is more of a burden to the company. Great things.
Varney: Real fast, the President wants to put out $1.5 trillion on infrastructure over the next 10 years. Do we have the workers to build all that we want to build?
Hitt: We don’t right now. But we need to address this labor shortage, and I put that in my letter to the President as well. You know, through immigration reform, job training and relocation of people in middle America to places where the jobs are, we can get that all done. We need a historic jobs bill that addresses this.
Varney: Todd Hitt. Thank you very much joining us, sir. Appreciate it.
Hitt: Always good to be here, Stuart. Thank you.
This video was first featured on Fox Business on February 1, 2018.