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Where companies' new tax savings will likely go
Related: Here's what America's biggest companies plan to do with all that cash coming back to the US
CBS News/AP
December 19, 2017
NEW YORK - Big US companies have been piling up cash for years, but they've spent little of it on buying equipment and raising wages and other things to grow the economy. Republicans say they know how to fix this: Give companies even more money by cutting their taxes. "There is more than enough cash for investment," said Daniel Alpert, managing partner at investment bank Westwood Capital. The tax bill is trying "to solve a problem that doesn't exist." Critics say the companies are more likely to use their tax savings to buy back their own stock and send dividend checks to investors than to expand operations. While the stock market has risen on the expectation of higher earnings, the bond market doesn't seem convinced that the plan will accelerate economic growth all that much.
Here's a look at the ways companies could spend their tax windfall, and the odds they will do so.....
Raise wages
Big-ticket spending
Buying back stock
For particulars on the above, see article @ top link.
Related: Here's what America's biggest companies plan to do with all that cash coming back to the US