by Via PR Watch for the Center for Media and Democracy points to the impact of tax cuts for nine companies: The Center for Media and Democracy just concluded an analysis of nine companies that are major players in ALEC, showing that even with the tax cut, those corporations have laid off or will lay off employees. Comcast, for example, said it will save 8 million from the tax cut, and announced 500 layoffs. Caterpillar reported that it will pay 9 percent less in income taxes, but also announced it is closing facilities. Eli Lilly reported that it lowered its corporate income tax rate by almost one-third but announced 3,500 layoffs at the end of 2017, layoffs that are still taking place. Energy companies are expected to be major beneficiaries of the tax
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Via PR Watch for the Center for Media and Democracy points to the impact of tax cuts for nine companies:
The Center for Media and Democracy just concluded an analysis of nine companies that are major players in ALEC, showing that even with the tax cut, those corporations have laid off or will lay off employees. Comcast, for example, said it will save $128 million from the tax cut, and announced 500 layoffs. Caterpillar reported that it will pay 9 percent less in income taxes, but also announced it is closing facilities.
Eli Lilly reported that it lowered its corporate income tax rate by almost one-third but announced 3,500 layoffs at the end of 2017, layoffs that are still taking place. Energy companies are expected to be major beneficiaries of the tax cut; but two ALEC energy companies, Chevron, and Marathon Petroleum, reported large tax savings as well as layoffs for the year.
The Center for Media and Democracy did not cherry-pick companies to find those that announced both tax savings and layoffs. Excluded were coal companies, for example, such as ALEC members Dominion Resources and Peabody Energy, which are downsizing as coal sales continue to decline. Nor did we choose companies that saved money on income taxes because they lost money. The nine companies analyzed below all made large profits.
What the companies did with the profits was a corporate choice. In most cases companies bought back shares, a practice which then increases the earnings per share and the dividends paid to shareholders. The boards of these companies vote for these share repurchases, and directors which own large numbers of shares greatly benefit from this repurchasing.