Companies turn Trump tax cuts into a big windfall for wealthy investors
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The Republican tax law is proving great for corporate executives and major shareholders—translation: rich people—but the evidence keeps coming in that giving corporations a giant tax cut doesn’t translate into jobs or higher wages for regular workers.Companies turn Trump tax cuts into a big windfall for wealthy investors
The Republican tax law is proving great for corporate executives and major shareholders—translation: rich people—but the evidence keeps coming in that giving corporations a giant tax cut doesn’t translate into jobs or higher wages for regular workers. A few companies have given workers a one-time bonus, but the real money is going to stock buybacks: Buybacks are a strategy to boost stock prices – by reducing the number of shares outstanding, which artificially increases a company’s earning per share. But they do little to improve the economy. How much money? It could be $1 trillion. So far in 2018: Apple – $100 billion Cisco – $25 billion Wells Fargo – $22.6 billion Pepsi – $15 billion AbbVie – $10 billion Amgen – $10 billion Google parent Alphabet – $8.6 billion Visa – $7.5 billion eBay – $6 billion Don’t forget, the corporate leadership that’s making these buyback decisions will also benefit from them, since many executive compensation packages are tied to stock prices or include stocks and stock options. Republicans claimed the corporate tax cut would benefit workers, though it was always easy to see that for a lie if you just poked at it a little. And now we have the unfortunate proof of the lie. Read more