After the tax plan received passage on Capitol Hill, AT&T and Comcast announced they would give $1,000 bonuses to thousands of U.S. employees. Other companies lined up with their own announcements: Fifth Third Bancorp said it will also hand out employee bonuses and raise the minimum wage, while Wells Fargo announced it is raising its minimum wage.
Still, it's wrong to assume Republican tax reform will create jobs and higher wages, Schumer's office wrote in a statement released Wednesday. "Over the past several weeks, major companies have announced an astonishing $83.7 billion in share buybacks, anticipating the passage of tax reform."
Since the start of the month, at least 32 U.S. companies have announced share buybacks of $100 million or more, according to the statement.
Those include Home Depot's $15 billion plan that was announced on Dec. 6, Oracle's $12 billion, which was unveiled just last week, and Pfizer's $10 billion buyback that was revealed on Tuesday.
"There is a reason so few executives have said the tax bill will lead to more jobs, investments, and higher wages — because it will actually lead to share buybacks, corporate bonuses, and dividends," Schumer's statement said.
Source: Bloomberg Pro Terminal
Trader Bozhidar Arabadzhiev
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.