Corporate Stock Buybacks Reach Record High with #GOPTaxScam
Now, Wall Street Journal reports the biggest corporations are buying back their own stock at a record high pace, thanks to the GOP tax scam:
S&P 500 companies that have reported earnings for the first three months of 2018 bought $158 billion of their own stock in the first quarter, according to S&P Dow Jones Indices. That is on pace for the biggest amount in any quarter, based on data going back to 1998.
The move has been fueled … by a new tax law that is freeing up cash and encouraging companies to bring back money held abroad.
Goldman Sachs Group Inc. expects S&P 500 companies’ spending on buybacks and dividends to increase by 22% to $1.2 trillion in 2018, outpacing the expected increase in capital expenditures and research and development in 2018, which it sees jumping 11% to $1 trillion.
So far, companies have announced more than $400 billion in corporate stock buybacks, overwhelmingly benefitting their corporate executives and wealthy shareholders. And while they celebrate their massive tax cuts, many companies are simultaneously laying off hundreds of workers.
With their tax bill, the GOP passed a scam that gives 83 percent of the tax cuts to the wealthiest one percent – putting corporations and the richest ahead of everyone else.
Democrats continue to fight for a fair, bipartisan tax code for America’s hard-working families with A Better Deal: Better Jobs, Better Wages, Better Future.