Trump's Tax Promises Undercut by CEO Plans to Help Investors

[DonViejo]

Source: Bloomberg




By Toluse Olorunnipa
November 29, 2017, 4:00 AM EST Updated on November 29, 2017, 1:43 PM EST

Major companies including Cisco Systems Inc., Pfizer Inc. and Coca-Cola Co. say they’ll turn over most gains from proposed corporate tax cuts to their shareholders, undercutting President Donald Trump’s promise that his plan will create jobs and boost wages for the middle class.

The president has held fast to his pledge even as top executives’ comments have run counter to it for months. Instead of hiring more workers or raising their pay, many companies say they’ll first increase dividends or buy back their own shares.

Robert Bradway, chief executive of Amgen Inc., said in an Oct. 25 earnings call that the company has been “actively returning capital in the form of growing dividend and buyback and I’d expect us to continue that.” Executives including Coca-Cola CEO James Quincey, Pfizer Chief Financial Officer Frank D’Amelio and Cisco CFO Kelly Kramer have recently made similar statements. “We’ll be able to get much more aggressive on the share buyback” after a tax cut, Kramer said in a Nov. 16 interview.

U.S. voters disapprove of the Republican tax legislation by a two-to-one margin, according to a Quinnipiac University poll released Nov. 15, and corporate promises to return any windfall to investors aren’t helping the White House sales effort. The Trump administration has appeared flummoxed. At a Nov. 14 speech to the Wall Street Journal CEO Council by Trump’s top economic adviser, Gary Cohn, the moderator asked business leaders in the audience for a show of hands if they planned to reinvest tax cut proceeds. Few people responded.


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[iluvtennis]

1. Which is the same thing Trump will do with his companies...

...creating more jobs and the supporting infrastructure around it takes big bucks and don't see companies doing that because of cutting corp taxes. companies want to do a risk/reward analyses which can take years. Som They'll just put the money in offshore investment accounts like they are currently doing. Per stock market growth, companies have made a lot of gains over last 3/4 years, but there's been no significant job creation cuz they are tucking the $$ away.

[Bengus81]

2. It's ALWAYS about shareholders,not the workers who BUILD the Company.....

Don't expect raises or anything else either. This RAPING is to be used for dividends,FAT raises for top brass,a new biz jet or three and NOTHING for workers.

Seriously,like we haven't seen this same trickle down HS played out over and over since Saint Ronnie first trotted it out in the 80's.

[noneof_theabove]

5. Short term memory....

I will say this again.

Welcome the United Corporations and Churches of America [UCCA] [ex-USA]
Where the Real Product is the Stock and
The True Customer is the Stockholder.
In god we trust, all others pay foreign loan shark interest.

AND...

You cannot control a population that is:
1 - well educated [call you bluff]
2 - well funded [have to by stuff for revolution]
3 - well fed [how long can you go without eating, maybe 1 meal]
4 - healthy [did you forget Napoleons war march to Russian in winter "fail" - health care lowers #2 & #3]
Remove any ONE of the above and you control that population.

population is very broad about number of people within a give area
could be your office or the entire country [no health care, higher taxes so rich get more - there went #2, #3 and #4]
and for #5 never, ever kill the enemy they can be left, but wounding them takes 3+ others to remove them to safety.

The Art of War "trumps" Trump's Art of the Deal.

--Old age and treachery will always overcome youth and vigor.

[disalitervisum]

3. Inflation is the result of tax cuts in a full-employment

consumer-confident economy, which in turn causes the FED to restrict the supply of money. Interest rates go up, and soon you have another recession.

[GeorgeGist]

4. No shit.

[Egnever]

6. Raising wages would be a better use

But not a bit surprising that it wont create more jobs. Demand creates jobs not money.