Most CEOs Plan to Use Tax Cuts to Pay Shareholders, Debts

By:
Chris Gaetano
Published Date:
Nov 29, 2017
TaxWorry

At a recent forum attended by CEOs of top companies like Coca Cola Co. and Pfizer, it was found that the vast majority had no plans to spend tax cuts on jobs and investment, with most opting instead to reward shareholders and pay down debt, according to Bloomberg. This sentiment has been supported by numerous earnings calls, interviews, polls and speeches from top corporate players, many of whom are talking about tax reform in terms of benefiting investors as opposed to creating jobs. A Bank of America Merrill Lynch Global Research, in fact, found that only 35 percent of companies plan to use the money for the kinds of capital expenditures that create jobs.

This is in contrast to the administration's insistence that the point of tax reform is to create jobs and increase workers' take-home pay by $4000 to $9000 a year. 

Despite mixed messages, the tax bill proceeds apace. The House had already passed its version, while the Senate bill recently cleared committee and is now on its way for full Senate consideration by the end of this week. 

Click here to see more of the latest news from the NYSSCPA.