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Mon Dec 18, 2017, 03:06 PM

Ceo's aren't waiting for the tax bill to pass they've already started pocketing the windfall

David Dayen
December 18 2017, 2:14 p.m.

U.S. CORPORATIONS ARE already beginning the process of pocketing the winnings from the tax bill jackpot they expect to hit any day now, undercutting, in a remarkably public fashion, the pretense that the corporate tax cut will lead to greater investment in job creation.

Since the Senate passed its version of the tax bill on December 2, 29 companies have announced $70.2 billion in stock buybacks, a maneuver that uses company cash to buy its own shares, which then drives up the price of those shares, rewarding major investors and executives whose compensation is directly tied to the company’s stock price.

The figure comes from a new report by Senate Democrats, which relies on the public statements of company executives. Stock buybacks, meanwhile, had been declining. There were $120 billion in buybacks in the entire second quarter of 2017, among all companies. The new figure — $70.2 billion in just 10 days, from just 29 companies — suggests that a surge of buybacks is in the offing if the tax bill becomes official, representing a staggering transfer of wealth from taxpayers straight to the wealthy.

As part of the tax bill, corporations will be able to bring back trillions of dollars parked overseas at a much lower tax rate than current law. Companies also benefit from a slashing of the corporate tax rate from 35 percent to 21 percent and the elimination of the corporate “alternative minimum tax,” which enables the use of as many deductions as possible to hold onto earnings.

more
https://theintercept.com/2017/12/18/tax-bill-corporate-rate-stock-buyback/

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Reply Ceo's aren't waiting for the tax bill to pass they've already started pocketing the windfall (Original post)
n2doc Dec 2017 OP
marybourg Dec 2017 #1
moondust Dec 2017 #2

Response to n2doc (Original post)

Mon Dec 18, 2017, 03:34 PM

1. That's what publicans are all about. nt

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Response to n2doc (Original post)

Mon Dec 18, 2017, 03:38 PM

2. Bubble time.

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