Mar 12, 2018

Defining away the gaping flaw in the company tax cut case

With Trump tax cut-funded share buybacks now worth over $200 billion in the US, company tax cut advocates have resorted to pretending share buybacks are just wonderful, thank you.

Bernard Keane — Politics editor

Bernard Keane

Politics editor

The problem for company tax cut advocates of US firms blowing their Trump tax windfalls on share buybacks is now officially serious: The Wall Street Journal has tried to pretend it's not a problem at all.

According to recent figures, the level of stock buyback announcements made by corporate America since the start of the year has reached a staggering $214 billion. And just 6% of the windfall is going to workers in bonuses and wage rises.

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6 thoughts on “Defining away the gaping flaw in the company tax cut case

  1. klewso

    Would Rupert use one of his papers to ‘advertorial-lies’?
    (As for Cato? Not the one I know.)

  2. brian crooks

    if you give the boss a million he`ll give you a dollar, maybe, thats the case for corporate tax cuts and some of the brainwashed illiterates will actually swallow it.

    1. DF

      Turnbull on 7.30 Report tonight said people who argued against the tax cuts were “theorising”, apparently unlike those who have no evidence to back their claims in favour of the tax cuts.

  3. Bobby

    “… will the Financial Review finally acknowledge their existence?”

  4. AR

    One can see why Cochrane is paid the big bucks for that painful bit of moral contortionism.

  5. Rocky Horror

    Senior management typically have performance agreements strongly linked to share price. Buybacks force up share prices. Easy bonuses!

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