The reason no CEOs raised their hands at a forum where they were asked if they would reinvest their tax cut savings in new or existing workers is now perfectly clear, if it wasn’t already. Bloomberg News writes:
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.
Just like always, Donald Trump is lying about the jobs this tax cut will create. Likewise, Republicans are lying about the “relief” it will bring to the middle class.
It’s a travesty and Republicans are barreling toward it because they’d do anything to please the GOP donors who have promised to close their wallets if they don’t accomplish something—like a tax cut for the filthy rich.
In a candid moment last week, Rep. Chris Collins conveyed out loud what many members have been thinking for months.
“My donors are basically saying, ‘Get it done or don’t ever call me again,'” the New York Republican told The Hill.
If you haven’t seen the video of chief White House economic advisor Gary Cohn witnessing exactly how anemic his tax heist will be at creating jobs, the clip is below. Only a gazillionaire could laugh at a moment like that. Cohn manages to delight in the humor of it.