"Here's How America's Biggest Companies Are Spending Their Tax Cuts"

"Here's How America's Biggest Companies Are Spending Their Trump Tax Cuts (It's Not on New Jobs)"

"The Trump tax cuts, which slashed the corporate tax rate from 35% to 21%, boosted corporate profits overnight for many big firms. Combined with the new provision that caused U.S. companies to repatriate billions in overseas earnings, many companies are awash in cash."

"We’re starting to learn what America’s biggest companies are doing with the huge windfalls from President Donald Trump’s tax cuts. And the answer is great for investors – but not so great for workers."

"That’s because many companies are returning huge portions of their billions in tax savings to shareholders in the form of share buybacks and dividend increases — not necessarily new hiring and investment."

"Companies are on track to plow a record $1 trillion into boosting dividends and buying back their own stock this year, says Howard Silverblatt, senior index analyst S&P Dow Jones Indices."

http://time.com/money/5267940/compan...22%3a%22%22%7d

Amazing how major companies' CEOs told the Administrarion beforehand this is exactly what they intended to do with the additional cash rather than reinvest it in their companies and workers, yet the Administration's rhetoric centered on jobs and benefits to the middle class. Wonder why?

Just another reality proving the hypocrisy of the "trickle down" fallacy GOP leaders sell their base every decade even though it has been exposed as bogus in practice, and the lemmings, who are actually hurt the worse with its actuality, eat it up

 

Here's another report on the unintended consequence of the tax break.

Trump's tax cuts are having an unintended consequence on corporate America, and it spotlights one of the biggest risks to the economy

 

Good for worker's 401Ks.

What was all that money parked overseas doing for workers?

 

Interesting opinion from the twitching corpse of Time.

From the article:

To be sure, Apple – like many other companies – has announced huge, multi-year proposals to invest in U.S. jobs. In January, CEO Tim Cook revealed a five-year, $350 billion plan that includes building a second headquarters as a result of the $38 billion a year the company is saving on taxes.

Other companies like AT&T, Walmart and Bank of America announced one-time bonuses of $1,000 for eligible employees as a result of tax cuts. But, a survey by Morgan Stanley predicted that workers would get 13% of the tax windfall – compared to 43% that was expected to go to investors in the form of stock buybacks and dividend increases.
​

And now, for a different take:

http://thehill.com/opinion/finance/380208-stock-buybacks-one-of-the-many-benefits-of-tax-reform

This is not true. Stock buybacks are not a flaw of tax reform. Instead, they are one of the many ways that prove tax reform is working. Buybacks (along with dividend payments) contribute to a stronger stock market that increases wealth and strengthens retirement security for millions across the country including seniors and middle class American families.

When a corporation has profit they can either invest in their employees, invest in new equipment or factories, or send money to shareholders through buying stock or paying out dividends.

In this context, a buyback can be best thought of as a company investing in themselves. There is nothing sinister about this — a business will seek to allocate resources in the most economically productive way, and so will choose to purchase its own stock or pay out dividends when no productive investments are available and the business has excess capital. In fact, there is little evidence that companies buy back stock or pay dividends at the expense of new investment.

These benefits do not go to a few wealthy investors. Rather, the benefits are felt by millions directly and indirectly.

After a company buys its stock back, the money does not vanish. As noted by Doug Holtz Eakin, just 20 percent of corporate earnings are distributed to taxable entities. This means that the majority of the money goes to pension funds, retirement accounts, or is reinvested in the economy.

A healthy stock market benefits millions of Americans. Half of all American households own stock and almost 55 million Americans – or nearly 60 percent of working age Americans own a retirement account or 401(k).​

 

"Dividend increases". Do you know what that means, @archives? Hint, it's neither bad nor limited to 1%ers.

 

I thought all the employees were going to be getting huge raises and jobs would be flowing like milk.

 

And if one of those companies buys back the 100 shares I own what do you think I do with the proceeds? Well if I made money on it I pay a capital gains tax on it. I can spend the money. I can invest the money in a new start up company. I can give it to charity. Etc etc.
It doesn't go down some black hole.

 

Historical low unemployment records, rising incomes, bonuses being paid, even the LFPR starting to improve. In fact companies having trouble finding new workers. So do you support tightening wellfare work requirements to get ofbthose able bodied recipients back into the workforce?

 

BUT, only AFTER the CEOs got their fill of High-Class Hookers.

 

Haha, as if companies will hire someone who has been unemployed for 10 years out of sheer need. You know how it works. They want already trained and highly skilled people, they don't want to invest in training their workforce.

 

I think they do that at the same time.....

 

I heard no such claims prior to the cuts.

Unlike...."If you like your DR................If you like your plan..............EVERYONE will save $2500.............

 

Please you pat Trump on the back every time he tells a lie or makes a false statement which is everyday.

 

every economic argument and theory proffered by the left is predicated on an idea that they are entitled to the fruits of another person's industry.

 

Sometimes several times an hour.

Like in that ridiculously misinformed tweetstorm from a few days ago.

 

I do like how pretty much any quote about Obama is that Dr one trying to pull whataboutism on Trumps lies. I could prob find something Trump said within the last 48 hours that was a lie. I would be shocked if there wasnt one

 

Poor attempt at deflection. Please try harder.

 

Cool. Find my posts regarding those tweets and bump them.

Or tuck tail and run away..........

My money is on the latter.

 

Probably in the last hour.

 

Great attempt at running and hiding.

 

I'm right here.........laughing at your inability to carry on an adult conversation.

 

Of course, thehill is trying to spin these news as if they were good for the average American. The truth is, 84% of stocks are held my 10% of Americans. Almost 50% of Americans do not own stock. Thus, those stock buybacks benefits go to a vast extent to the richest Americans. Winning....

 

So it's childish to point out the many lies and falsehoods by the President, ok.

 

WRONG!

It's more of an hourly thing than daily.

 

Sex workers benefit too.