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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsTax cut sparks record-setting $178 billion buyback boom
http://money.cnn.com/2018/05/20/investing/stocks-week-ahead-buybacks-tax-cuts/index.htmlS&P 500 companies showered Wall Street with at least $178 billion of stock buybacks during the first three months of 2018, according to Howard Silverblatt of S&P Dow Jones Indices.
That's a 34% bump from last year and tops the prior record of $172 billion set in 2007, just prior to the start of the Great Recession. Apple (AAPL) rewarded shareholders with $22.8 billion in buybacks -- the most of any company in any quarter ever.
Total S&P 500 shareholder payouts -- buybacks plus dividends -- for the past 12 months could top $1 trillion for the first time ever, Silverblatt said.
The buyback bonanza occurred during the first full quarter after President Donald Trump signed into law a massive corporate tax cut that was supposed to lift business spending on job-creating investments.
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So much winning!
LastLiberal in PalmSprings
(12,563 posts)All they do is cause the corporations and the wealthy to sock away more money.
Wellstone ruled
(34,661 posts)and as we knew would happen is this,83% of these Tax Cuts,Negative Tax Refunds go to off shore Investment entities.
Cicada
(4,533 posts)If the Fed is worried the economy may overheat they will raise interest rates to kill the stimulation from increased investment. If the tax cut increases deficits the extra borrowing will draw money away from other investments. But if the economy is slack with little good investment opportunities tax cuts might help I guess. And maybe there are perverse effects. If tax rates decline maybe people will be able to cover their bills by working less. And if tax rates rise maybe they will work more to get enough to cover their bills. Maybe these sorts of complications explain the apparent failure of tax cuts to produce much economic benefit.
pwb
(11,245 posts)I never thought that for a second.