Feb 5, 2018

Most US companies aren’t using Trump’s tax cuts for investment or wage rises

American companies continue to make plain they'll use company tax cuts to look after shareholders. None of it gets reported by the spruikers of similar handouts to multinationals here.

Bernard Keane — Politics editor

Bernard Keane

Politics editor

House Speaker Paul Ryan

The bad news for the corporate tax cut crowd just keeps coming. In volume 27 of Things You Won’t Read In the Financial Review, a new analysis shows how few US corporations are sharing the benefits of the Trump tax handout. A study by the progressive "Americans for Tax Fairness" -- but using data from the right-wing, pro-tax cut "Americans for Tax Reform", shows 46, or 9%, of Fortune 500 companies in the US planning to share some of the tax cut windfall with employees or customers, and the majority of that plan to do so with one-off bonuses, not permanent wage increases. Twenty large corporations have so far announced they will be engaging in share buybacks and eight of the firms have announced a total of 27,000 job cuts since the tax bill was passed. Late last week, credit card giant Visa also announced it was using its tax cut windfall (its tax rate fell 6 percentage points, it reported) for a "new $7.5 billion share repurchase program" and an increased dividend.

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14 thoughts on “Most US companies aren’t using Trump’s tax cuts for investment or wage rises

  1. old greybearded one

    I think I saw where Walmart had put off about 6000 workers as well.

    1. klewso

      Their ‘Sam’s Club’ stores?

  2. brian crooks

    what a surprise, the greedy 1% aren`t passing on trumps tax cuts to their workers, bet the C.E.O`s passed a big chunk of it onto themselves, if the stupid voters swallow this bullshit they deserve everything turdball throws at them

  3. Aethelstan

    Soon we will be hearing from the Republicans that the government doesn’t have enough money to pay welfare and fund healthcare … so there will need to be cuts in welfare and government assistance with healthcare …

    1. zut alors

      If, instead of big business tax cuts, governments poured the equivalent tax dollars into extra hospitals & medical facilities they would be in danger of creating… drum roll!…jobs.

      Actual jobs, not imagined ones touted by disingenuous CEOs.

  4. cyberART

    Ordinary American voters are held in contempt by Republican Politicians. The complete Corporate takeover of democracy in American. Can happen in Australia?

  5. bref

    I’m certain the tax cuts proposed here in Oz will have a different effect. On Insiders on Sunday Turnbull promised our tax cuts will cause companies to invest more, provide more jobs and lead to higher pay. Surely he wouldn’t lie about that would he?

    1. AR

      Unlike his Canutean decree that the law of maths are secondary to the laws of Australia, yesterday after the 6th Barry..Barry.. “the Law of Economics have not bee repealed”.
      So that’s all dunky-hory then.
      A rising tide will sink all shits.

  6. klewso

    It’s almost hard to understand how the Morriscum, Cormann, Tuppence their cheer-squads like the Fin Rev and Murdoch’s Muppets et al could get it so wrong and be so adamant in assuring us ‘what will happen if we hand out our own tax cuts to companies’, especially the ones that don’t pay their due now, and just donate so much to the Limited News Party anyhow – to maintain that status quo?
    ….. Guess all those years in lore skool have paid off for Tuppence? To quote Sheriff Taggart he “can use his tongue prettier’n a $20 whore”.

    1. zut alors

      Sheriff Taggart has delivered the Line of the Day.

  7. Jay Lawson

    Share buybacks drive up the share price and trigger nice bonuses for management. Investment can wait for some future kind-hearted management

  8. AR

    Is there another politician less suitable than the Kormanator to be using the entirely meaningless phrase “wibble, wobble” as he persists on doing in the public funded Senate?

  9. klewso

    These half-wits that seem to think we all work for Santa Claus? Boy have I got news for them.

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