[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.