posted December 20, 2017 09:06 PM            

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

CEOS AREN’T WAITING FOR THE TAX BILL TO PASS — THEY’VE ALREADY STARTED POCKETING THE WINDFALL

U.S. CORPORATIONS AREalready 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.

Republicans insist that the trillions of dollars headed back to corporations will get funneled into investments, job creation, and wage growth, a recitation of the theory of trickle-down economics. Corporate CEOs beg to differ. In a now-famous interlude with White House National Economic Council Director Gary Cohn, CEOs were asked whether they would spend more from corporate treasuries if the tax bill passed. Only a few raised their hands. “Why aren’t the other hands up?” Cohn pleaded.

We now have 70.2 billion reasons why. And counting.

The companies announcing buybacks include some of the biggest in the world, like Home Depot, Oracle, Honeywell, Bank of America, Anthem, Boeing, MasterCard, and United Airlines. All of the announcements have come since December 5.

“Corporate CEOs have made clear that the massive tax giveaways in the Republican plan will not be passed on to workers but to rich investors — including the wealthy foreign investors who own about a third of the shares in American companies,” said Sen. Elizabeth Warren, D-Mass., in a statement accompanying the Senate Democrats’ report. “This plan will do nothing to stimulate the economy or raise wages — but it sure will make a bunch of rich guys a lot richer.”

The case of Oracle in particular is instructive. The software maker had $52 billion stashed overseasas of the end of 2016, the fifth most of any U.S. company, according to Moody’s Investors Service. Under the tax bill, that money would come back to the U.S. at a dramatically reduced tax rate. On December 14, the company announced a $12 billion buyback, with investors enjoying the benefits of the repatriated funds. Oracle co-founder Larry Ellison will receive an estimated$103.7 million in stock over the next five years, which actually represented a drop from his previous stock awards. With the buybacks, Ellison’s stock holdings will jump in value.

In 2004, President George W. Bush gave companies like Oracle a “repatriation tax holiday.” Hundreds of companies returned $312 billion in overseas earnings to the U.S. at a 5.25 percent tax rate. The Congressional Research Service cited one study showing that 91 percent of that money went to stock buybacks. Stock buybacks, as a result, jumped by 84 percent, according to a Goldman Sachs analysis.

The spectacle of companies announcing buybacks before the ink dries on the GOP tax bill ends all debate, if there was any left, on whether the tax cuts will lead to more jobs and better wages, or mass shareholder enrichment.

posted December 20, 2017 09:13 PM            

It's in a table in the article which i can't seem to be able to copy on my phone

posted December 20, 2017 09:51 PM            

If you'd bothered to read beyond the title you'd have noticed the link i posted is from THE INTERCEPT, which has actually exposed some fake CNN news for which CNN journalists have been fired

The $15/hr wage bill was introduced by bernie sanders, a progressive. He's pressuring all states to adopt it, he's been working on it for a year now, it's pathetic that only 2 companies will do it, if it ever becomes a reality

Wonderful abt the $1000, ea worker will now have a bigger option to figure out how to spend it.
Are you living on a cloud? Do you even know how pathetically far $1000 goes?
Let me give you a shot of reality...IT'S NEXT TO NOTHING!!

As for att etc investing, you keep sipping that koolaid

Read my perfectly lined lips (i'm at christmas party)...

THE. RICH. ARE. GREEDY.
CORPORATIONS. ARE. CORRUPT.

That's the economics 101 you need to learn

posted December 21, 2017 02:20 AM            

It's very surprising to me that you shld call him WEALTHY. In 2014 his net worth was abt 400k, in 2016 it was around 600k or so. He makes a salary of abt 175k. It is only in this past year that he wrote a best seller and got a pretty good advance and royalty to take his net worth to just over a million, which is great bc it's well earned! But you call that WEALTHY??

Do you know that nowadays a 30 yr old w/ a good professional job right aftr college can easily have a net worth of 500k - 700k? And this doesn't even include those in high paying specialties of medicine etc. Bernie is 76 yrs old, who has worked his whole life. I'm stunned his net worth is only a million, w/ the million being earned at age 75! Do you know how expensive homes are nowadays in urban areas? If you think a net worth of a million is WEALTHY in current times, then you're abt 40 yrs behind times!!

And when you compare bernie's million w/ other politicians who have 15 mill, or 30 mill, he is one of the LEAST WEALTHY!!

posted December 21, 2017 02:28 AM            

quote:

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Originally posted by Randall:
Allow me to give you a lesson in capitalism. You can't force companies to pay a $15 minimum wage. What that does is cause layoffs and automation to replace employees.

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No need to give me any lessons. If you'd read my post w/ attention, you'd have noticed that nowhere did i say or imply that companies can be forced to pay a certain wage. I said bernie introduced the $15 min wage and has been pushing for the past yr for all states to accept it. Once all or a majority of states accept it, then companies will also follow, bc of competition, social pressure etc

posted December 21, 2017 02:31 AM            

quote:

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Originally posted by Randall:
Go to the produce section of Walmart and have a look at the sheer excess.

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posted December 21, 2017 02:48 AM            

quote:

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Originally posted by Randall:
The best way to raise the minimum wage to $15 is a tax cut!!!!!!

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Complete, absolute baloney!!!

Companies have always gotten tax cuts, yet people have ALWAYS had to fight for the min wage to go up. Compared to the billions companies get in tax cuts, why is the min wage not $20 - $25 per hour? The essence of this article in my op is abt companies not hiring. You think they're going to increase min wage voluntarily to $15???

You can hold your breath for them to do that, i'm not. Everything being presented now including the 2 companies that you say are going to raise min wage...all of it is the front of a showcase, designed to make people not react negatively bc of the 2018 elections. It's like throwing a bone to a dog to keep it quiet

But of course you're welcome to continue believing how great corporations are...your love for the GOP is like that of a 4 yr old for his mommy...bc she can do no wrong

posted December 21, 2017 03:05 AM            

Bernie who wants people to benefit financially, and att/comcast that want to make money off of shaming, humiliating, exploiting, and degrading women

At some point in your life you're gonna have to realize that your priorities are all mixed up...just like they are abt roy moore and his treatment of women...in comparison to whom you call doug jones a baby killer, when he actually brought kkk killers to justice...for killing little girls

Where are your priorities? Have you ever asked yourself that?

posted December 22, 2017 09:21 AM            

It's easy to say that women in the porn industry have a choice. But 98% of them are addicted to drugs, their pimps make sure of that before hand. So no they DON'T have a choice!

But you who has a choice are CHOOSING to control a woman's biological decisions. That imo is a much bigger hypocrisy. This desire to control a woman arises from a deep psychological fear that all men have of women. Read up on it and you might just begin to understand your own inner fear blocks that i've picked up on all along. To the extent men are able understand and overcome this fear, they are able to share emotionally satisfying intimacy w/ women, which adds years to their life

If everyone has due process how come you apply it only to roy moore, yet jump to calling doug jones a baby killer DESPITE the evidence of his own words to the contrary. You don't want to believe doug jones' own words, yet you're quick to believe roy moore's denials...more hypocrisy from you

posted December 22, 2017 09:25 AM            

quote:

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Originally posted by Randall:
He refers to himself as a Socialist! What Bernie really is, is a Hillary Clinton sock puppet.

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posted December 22, 2017 09:29 AM            

quote:

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Originally posted by Randall:
Socialism doesn't work. One word: Venenzuela. Capitalism works.

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I have 3 words for you!

Puerto Rico
Illinois

posted December 22, 2017 09:39 AM            

quote:

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Originally posted by Randall: ...yet you are perfectly fine bankrupting this country with free education for all.

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More baloney bc you'd rather have the country filled w/ charter schools and education that programs the mind right from a young age, or schools like tRump universities that cheat people, and then are forced by courts through law suits to return money to students who got cheated. Yeah that's capitalism for you

posted December 22, 2017 09:42 AM            

quote:

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Originally posted by Randall:
He refers to himself as a Socialist! What Bernie really is, is a Hillary Clinton sock puppet.

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