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UPS CEO: Obamacare has a big advantage that I hope gets continued

Nicole Sinclair
Markets Correspondent

United Parcel Service (UPS) CEO David Abney said he hopes that increased healthcare for more Americans under Obamacare stays.

“Rising healthcare costs is a big concern for us as well as it is for other businesses,” Abney said. “On the other hand, one of the big advantages of Obamacare is that people who have not been insured before are. That’s very important and I hope it gets continued under this new policy.”

Abney added that he doesn’t yet know enough details about the new “Trumpcare” legislation (the American Health Care Act) to understand the impact on UPS but that he hopes there is a real focus on rising costs for all Americans.

“There is a lot of efficiency that needs to come into this healthcare system and we hope that Congress and the administration come up with something that gets to the real problem—the rising cost for all Americans,” Abney said.

President Trump, with Secretary of Transportation Elaine Chao and Blackstone CEO Stephen A. Schwarzman, speaks during a strategic and policy discussion with CEOs on April 11, 2017 in Washington, DC. (Photo by Olivier Douliery-Pool/Getty Images)

Taxes and trade

Abney told Yahoo Finance he is encouraged by current White House proposals to cut taxes and modernize trade.

“It’s still early, we have to see the details. But we’re more encouraged than we have been in a long time about the possibility of tax reform,” Abney said.

He said the company will see a 35% tax rate this year and so any cut, along with a shift to a territorial tax regime, would help the company’s bottom line.

Abney added that he is encouraged the president is looking to modernize NAFTA versus eliminate it.

“We support efforts that boost trade, remove unnecessary regulations, and stimulate real GDP expansion,” he said.

UPS International President Jim Barber recently said that there is much opportunity ahead for global trade.

“A few prominent commentators have begun questioning whether the golden era of trade is over. I don’t personally share that pessimism. While macro trade has been tepid, I believe that largely is a function of political uncertainties and slow growth in isolated lanes over the past few year,” he said. “As the global economy strengthens, trade will rebound. As markets have opened and capitalism has spread over the last 30 years, consumers around the world have developed a taste for goods made all over the world.”

Abney explained that businesses do not like uncertainty and said he is proceeding with “cautious optimism.”

Nicole Sinclair is markets correspondent at Yahoo Finance.

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