Regardless of how Congressman Jim Renacci tries to spin it, it gets clearer by the day that his GOP tax bill is not aimed at helping Ohio’s working families. A new CNBC report shows that Wall Street investors have averaged a whopping $4.8 billion a day in stock buybacks in 2018, and JP Morgan projects there will be a record $800 billion by the year’s end. Instead of investing in economic development, job creation, or wage increases, Renacci’s tax bill is funneling money to the wealthy and well-connected while Ohio’s middle class is left behind.
Jeff Cox – March 12, 2018
- Companies have been feverishly putting the savings they reaped from the tax breaks passed in December into their investors’ pockets this year.
- Share buybacks in 2018 have averaged $4.8 billion a day, double the pace for the same period last year, according to market data firm TrimTabs. That comes following Congress’s move to slash the corporate tax rate from the highest-in-the-world 35 percent to 21 percent.
- “The feverish buyback activity suggests companies plan to use a hefty chunk of the money they expect to save on taxes to buy back stock,” David Santschi, director of liquidity research at TrimTabs, said in his weekly report.
- JP Morgan recently estimated that by year’s end, buybacks would reach a record $800 billion, a 51 percent increase over last year and in keeping with the trends TrimTabs has recorded for the year to date.
Read the full story here.
Wall Street Journal: Boom in Share Buybacks Renews Question of Who Wins From Tax Cuts
New York Times: Banks Are Big Winners From Tax Cut
Wall Street Journal: Private Equity Expected to Benefit From Tax Overhaul
New York Times: Bonuses Aside, Tax Law’s Trickle-Down Impact Not Yet Clear
International Business Times: Koch Brothers Could Be $1 Billion Richer Each Year From GOP Tax Bill