Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Corporate Tax Cut Riches Going to Shareholders, Not Workers

Published 09/03/2018, 10:56 pm
Updated 09/03/2018, 10:56 pm

Investing.com - The bulk of Corporate America's savings from the Trump tax cut package is going to shareholders not workers.
S&P 500 companies have allocated about $5.6 billion to bonuses and wage increases since the tax cuts became law. Meanwhile, $183 billion has been spent on share buybacks.
The White House says 3.5 million workers have benefited from bonuses and pay hikes so far, but that's less than 3% of the total workforce.
A recent survey by Morgan Stanley (NYSE:MS) showed just 13% of the money saved from taxes will be spent on pay raises, bonuses and employee benefits; 43% will go toward stock buybacks and dividend increases.
Analysts say the corporate tax cut is not responsibl e for all of the pay increases and improved benefits. Some companies are responding to the tight labor market in an effort to retain workers.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.