US President Donald Trump is selling tax reform to Americans on the promise it will create extra income for companies to invest in their businesses and create jobs. Some of the biggest companies have very different plans.
US corporations are saying they would use a tax reform windfall to buy back shares, retire debt and other shareholder-friendly moves, in recent post-earnings calls with investors and securities analysts.
The Trump administration wants to cut the U.S. corporate income tax rate to 20 percent from 35 percent and encourage multinationals to bring home profits held overseas. The president promised his tax reform would give companies incentives to build plants in the United States rather than overseas.
The White House Council of Economic Advisers bolstered that with an analysis that concluded lower corporate taxes would motivate companies to invest in new machines and hire more skilled work ..