Corporations Say Publicly They’ll Pocket the Tax Cut, But Republicans Aren’t Listening

[Windparadox]

`

"Weeks before the Republican-led Congress moved toward final passage of its corporate tax cut bill, major companies had already begun a surge of stock buybacks — confirming critics’ fears that the windfall of lower rates will be used for self-enrichment rather than job growth.Home Depot led the buyback splurge, pocketing $15 billion. On an earnings call held earlier this month, the company’s CFO Carol Tomé quietly admitted the strategy, when asked about the impact of tax reform on the firm:

It really all depends on if it happens and when it happens and how we would spend it. Cash is fungible. Right now, we’re thinking it might not happen until 2019, so obviously we are using internally generated cash in 2018 to invest in the business and return capital to our shareholders. If it were to happen in 2019, we might use the tax — cash tax savings to invest in the business and then use — generated cash to back buy [sic] shares, it’s all fungible. The point is, we’re going to generate a lot, we may get some from tax reform and we will use it. We will invest back in the business, and we will return it our [sic] shareholders.

By “return it to our shareholders,” she is referring to a buyback, which drives up the price of a stock and can come with dividends as well. Typically, executives hold much of their wealth in company stock, and their compensation is tied to the performance of the shares". - Source​

`
`
Right how, the far right is tripping over each other, trying to find and post companies who say they'll offer their employees bonuses with the tax money. I laugh to myself. That money will not be available until March, at the very least, and a lot can happen between then and now. Aside from that, Americans have very short attention spans and corporations and banks, lie as notoriously as our politicians.

The corporations are saying is that they WILL NOT use the money to create jobs.Instead, they are all saying the money will be used to increase their bottom line, for themselves and stockholders. The far right is of course ignoring this.
`

 

[Penelope]

Yes I just got a 9 pay letter with new prices from Comcast , I guess repeal of Net Neutrality has something to do with this.
Thank you Trump.

 

[Aba Incieni]

143 million Americans will see tax cuts in 2018. I had no idea America had so many rich taxpayers.

 

[norwegen]

Corporation's might pocket their own money?

The horror!

 

[Penelope]

Corporation's might pocket their own money?

The horror!

Well we all agree with corp welfare. Who pays Corp income? Customers, we the people and we the people just have to have a weeks holiday from the internet, and maybe a few others.

 

[norwegen]

Corporation's might pocket their own money?

The horror!

Well we all agree with corp welfare. Who pay Corp income? Customers, we the people and we the people just have to have a week holiday from internet, and maybe a few others.

Other foreign members of USMB at least have a grasp of English.

 

[Aba Incieni]

Sounds like the smart money would be with the corporations. Then you could pocket some of that corporate money, too.

 

[Penelope]

Corporation's might pocket their own money?

The horror!

Well we all agree with corp welfare. Who pay Corp income? Customers, we the people and we the people just have to have a week holiday from internet, and maybe a few others.

Other foreign members of USMB at least have a grasp of English.

Oh I find posts all the time that have misspelled words on them and I do not say anything, but will you be happy if I put an s after pay and s after week and a the before internet? Will that make you happy. Done, are you happy now, or have you found something else?

 

[Aba Incieni]

Corporation's might pocket their own money?

The horror!

Well we all agree with corp welfare. Who pay Corp income? Customers, we the people and we the people just have to have a week holiday from internet, and maybe a few others.

Other foreign members of USMB at least have a grasp of English.

Oh I find posts all the time that have misspelled words on them and I do not say anything, but will you be happy if I put an s after pay and s after week and a the before internet? Will that make you happy. Done, are you happy now, or have you found something else?

I can't figure out why you're divorced.

 

[Windparadox]

Oh I find posts all the time that have misspelled words on them and I do not say anything, but will you be happy if I put an s after pay and s after week and a the before internet? Will that make you happy. Done, are you happy now, or have you found something else?

`
`
It's quite obvious the respondents didn't read the entire article or they would have understood the statements. Not people worth arguing with. This tax break was done in a large part to spur the economy and create new jobs, neither of which is happening. Manufacturing isn't expanding, services aren't expanding and NO NEW jobs are being created. They are taking the tax money and creating paper wealth for the CEO's and stock holders, which has no effect on the economy.

 

[MisterBeale]

If corporations are saying publicly they will pocket the tax cut, isn't that a good thing?

I thought they wanted to incentivize corporations to move back to the US in the first place? Doesn't that do this?

Just one more incentive.

 

[MisterBeale]

Oh I find posts all the time that have misspelled words on them and I do not say anything, but will you be happy if I put an s after pay and s after week and a the before internet? Will that make you happy. Done, are you happy now, or have you found something else?

`
`
It's quite obvious the respondents didn't read the entire article or they would have understood the statements. Not people worth arguing with. This tax break was done in a large part to spur the economy and create new jobs, neither of which is happening. Manufacturing isn't expanding, services aren't expanding and NO NEW jobs are being created. They are taking the tax money and creating paper wealth for the CEO's and stock holders, which has no effect on the economy.

 

[Aba Incieni]

Oh I find posts all the time that have misspelled words on them and I do not say anything, but will you be happy if I put an s after pay and s after week and a the before internet? Will that make you happy. Done, are you happy now, or have you found something else?

`
`
It's quite obvious the respondents didn't read the entire article or they would have understood the statements. Not people worth arguing with. This tax break was done in a large part to spur the economy and create new jobs, neither of which is happening. Manufacturing isn't expanding, services aren't expanding and NO NEW jobs are being created. They are taking the tax money and creating paper wealth for the CEO's and stock holders, which has no effect on the economy.

Maybe if we wait until they actually kick in.

143 million Americans will see tax cuts in 2018. That's a lot of corporations.

 

[whitehall]

Why do lefties continue to labor (pardon the pun) under the delusion that all money belongs to the government and they only let us use it for a little while? It's their freaking money. Everyone is going to pocket the tax cut. Did you expect them to donate it the government?

 

[Windparadox]

<snip>

`
`
Your reply has absolute nothing to do with the topic. Please remain focused.

 

[Windparadox]

Why do lefties continue to labor (pardon the pun) under the delusion that all money belongs to the government and they only let us use it for a little while? It's their freaking money. Everyone is going to pocket the tax cut. Did you expect them to donate it the government?

`
`
Did you read the ENTIRE article?

 

[usmbguest5318]

`

"Weeks before the Republican-led Congress moved toward final passage of its corporate tax cut bill, major companies had already begun a surge of stock buybacks — confirming critics’ fears that the windfall of lower rates will be used for self-enrichment rather than job growth.Home Depot led the buyback splurge, pocketing $15 billion. On an earnings call held earlier this month, the company’s CFO Carol Tomé quietly admitted the strategy, when asked about the impact of tax reform on the firm:

It really all depends on if it happens and when it happens and how we would spend it. Cash is fungible. Right now, we’re thinking it might not happen until 2019, so obviously we are using internally generated cash in 2018 to invest in the business and return capital to our shareholders. If it were to happen in 2019, we might use the tax — cash tax savings to invest in the business and then use — generated cash to back buy [sic] shares, it’s all fungible. The point is, we’re going to generate a lot, we may get some from tax reform and we will use it. We will invest back in the business, and we will return it our [sic] shareholders.

By “return it to our shareholders,” she is referring to a buyback, which drives up the price of a stock and can come with dividends as well. Typically, executives hold much of their wealth in company stock, and their compensation is tied to the performance of the shares". - Source​

`
`
Right how, the far right is tripping over each other, trying to find and post companies who say they'll offer their employees bonuses with the tax money. I laugh to myself. That money will not be available until March, at the very least, and a lot can happen between then and now. Aside from that, Americans have very short attention spans and corporations and banks, lie as notoriously as our politicians.

The corporations are saying is that they WILL NOT use the money to create jobs.Instead, they are all saying the money will be used to increase their bottom line, for themselves and stockholders. The far right is of course ignoring this.
`

The far right is of course ignoring this.

Yes. We today find ourselves encumbered by a tax code that was enacted more as a means to inspire a given set of behaviors among corporate chiefs than as a means to manage/secure government revenues. The message from those chiefs was public and unequivocal well before H.R. 1 of fiscal 2018 became law.

Any CPA or tax attorney will attest that tax provisions and tax structures work best when they are designed and implemented with one goal in mind, that of securing requisite revenue for the government to perform the things it's been tasked with performing. When tax legislation is used as a behavioral "carrot" or "stick," it may work and it may not. Either way, it's more expensive for everyone involved to treat the tax code as a behavioral tool than solely as a means of revenue generation and management.

One might wonder why legislators and administrators like to use the tax code as a behavioral tool. The answer is fairly straightforward: there's little basis for challenging the legitimacy of a Congressional tax provision. In contrast were Congress to enact a non-tax-related law to explicitly penalize the actions they instead attempt to inspire via the tax code, there'd be myriad challenges to them, and regardless of whether the law withstands legal challenges, the mere act of jurists delivering their opinions close the door on certain as yet unbroached policy choices and opens the door to new ones. When that is in the offing, it's all but impossible to predict what political faction will exploit the newfound clarity. Naturally and without exception, whichever party be current holders of political power eschew taking the risk that theirs be the party that soonest suffers a loss of political sway as a result; thus the tax code is used instead of the clearer and more direct approach of explicit legislation regarding the undesirable practice.

 

[MarathonMike]

There is a big difference between pocketing a tax cut and returning the money to shareholders either indirectly through a buyback which under normal market conditions causes a rise in the price or directly by increasing the dividend. That is a very misleading statement, just as it was intended to be.

 

[martybegan]

`

"Weeks before the Republican-led Congress moved toward final passage of its corporate tax cut bill, major companies had already begun a surge of stock buybacks — confirming critics’ fears that the windfall of lower rates will be used for self-enrichment rather than job growth.Home Depot led the buyback splurge, pocketing $15 billion. On an earnings call held earlier this month, the company’s CFO Carol Tomé quietly admitted the strategy, when asked about the impact of tax reform on the firm:

It really all depends on if it happens and when it happens and how we would spend it. Cash is fungible. Right now, we’re thinking it might not happen until 2019, so obviously we are using internally generated cash in 2018 to invest in the business and return capital to our shareholders. If it were to happen in 2019, we might use the tax — cash tax savings to invest in the business and then use — generated cash to back buy [sic] shares, it’s all fungible. The point is, we’re going to generate a lot, we may get some from tax reform and we will use it. We will invest back in the business, and we will return it our [sic] shareholders.

By “return it to our shareholders,” she is referring to a buyback, which drives up the price of a stock and can come with dividends as well. Typically, executives hold much of their wealth in company stock, and their compensation is tied to the performance of the shares". - Source​

`
`
Right how, the far right is tripping over each other, trying to find and post companies who say they'll offer their employees bonuses with the tax money. I laugh to myself. That money will not be available until March, at the very least, and a lot can happen between then and now. Aside from that, Americans have very short attention spans and corporations and banks, lie as notoriously as our politicians.

The corporations are saying is that they WILL NOT use the money to create jobs.Instead, they are all saying the money will be used to increase their bottom line, for themselves and stockholders. The far right is of course ignoring this.
`

Buying back allows them to keep more of their profits, which increases their ability to expand, pay shareholders, or take other corrective actions.

Considering how many people's 401k's contain stock, as well as people's pensions, rising stock prices and dividends helps them, even if it also helps larger single stockholders.

And those now richer people also spend $$.

Hopefully they get new yachts, new cars, and throw elaborate parties, thus returning $$ back into the economy at all levels.

 

[Pop23]

Oh I find posts all the time that have misspelled words on them and I do not say anything, but will you be happy if I put an s after pay and s after week and a the before internet? Will that make you happy. Done, are you happy now, or have you found something else?

`
`
It's quite obvious the respondents didn't read the entire article or they would have understood the statements. Not people worth arguing with. This tax break was done in a large part to spur the economy and create new jobs, neither of which is happening. Manufacturing isn't expanding, services aren't expanding and NO NEW jobs are being created. They are taking the tax money and creating paper wealth for the CEO's and stock holders, which has no effect on the economy.

And when do the tax cuts take effect?

Answer, not yet.

Jeez.