Shocking Nobody, Corporations Say Tax Cuts Won't Go to Workers | Solutionomics
In response to a proposed reduction of tax rates on foreign earned profits, U.S. multinational companies expect to use savings from the proposed reduction to pay down debt, increase share buybacks and pay out more dividends. In a Bank of America survey of corporations, the most common expected use of proceeds from foreign-earned profits was paying down debt. Surely business investment was next, right? No. The second most common expected use of proceeds was share buybacks. Well, it must have been third on the list? Nope. The third most common expected use of proceeds from tax savings on foreign earnings was mergers and acquisitions. Well, that's okay because we all know that when companies buy other companies they retain all the employees (insert sarcastic tone here.) Capital expenditures finally came in at No. 4, followed by increasing dividends. Who could have seen that coming? After all, when companies saw after-tax profits increase more than 950 percent from 1986 to 2016, they