Article

2018-02-17 Economy

Democrats assail $120 billion in stock buybacks in 2018 as new 'GOP tax scam'

[Washington Examiner] Senate Democrats are decrying what they say is a new "GOP tax scam" in the wake of the Republican tax law, more than $120 billion in stock buybacks in 2018 are only benefitting corporate executives and shareholders.
No, they're not "stupid." They're just hoping you are.
"This is a problem for the middle class. Members of this committee promised that middle-class paychecks would be bulging early in 2018, but instead the CEOs are funneling the tax windfall into buybacks that inflate the value of stocks held by affluent executives and wealthy shareholders," Senate Finance Committee Ranking Member Ron Wyden, D-Ore., said in the Democrats' weekly address, which features prior clips of members speaking on the tax law. "Meanwhile, recent public announcements by companies have found that the employee pay boost, touted by the Republicans, add up to $5 billion give or take."

"We don’t know where this is going to end. We do know that it’s great for big shareholders because it jacks up share prices. We also know that it’s great for CEOs whose compensation very often rides on share prices, so when they jack up their own share price with buybacks it comes right back to them in their executive compensation," said Sen. Sheldon Whitehouse, D-R.I.

Posted by Besoeker 2018-02-17 07:06|| || Front Page|| [11132 views ] Top

#1 "We don’t know where this is going to end. We do know that it’s great for big shareholders because it jacks up share prices

Business profits, dividends, portfolio profits, and Federal income taxes also rise on increased stock prices. Care to have a look at stock prices headed the opposite direction ?

Article's title should read:

'Democrats Assail Business Success'...or through extension, 'Democrats Assail President Trump's Success.'

Posted by Besoeker 2018-02-17 07:18|| 2018-02-17 07:18|| Front Page Top

#2 Where were the Dems when CNN ran this headline:

Dividends, stock buybacks to hit a new high of $1 trillion in 2015

http://money.cnn.com/2015/10/27/investing/stocks-dividends-buybacks-high-2016/index.html

Posted by Airandee 2018-02-17 07:58|| 2018-02-17 07:58|| Front Page Top

#3 Fewer stocks available in the market should decrease the supply and drive up the demand and the price/share of stocks owned by stockholders. Earnings per share should also increase as the result of stock appreciation. Should be good for "Main Street." Ordinary mom and pop investors have been hosed by ~~hedge fund operators and institutional investors~~ market predators.

Posted by JohnQC 2018-02-17 08:16|| 2018-02-17 08:16|| Front Page Top

#4 Media / politician formulas:

Temperature up -> global warming!
Temperature down -> weather is not climate!
Stocks up -> The market is not the economy!
Stocks down -> The economy is broken, time for socialism!

Posted by M. Murcek 2018-02-17 11:57|| 2018-02-17 11:57|| Front Page Top

#5 Crumbs.

Posted by ClemKadiddlehopper9000 2018-02-17 15:02|| 2018-02-17 15:02|| Front Page Top

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