Major firms tout small perks for workers while funneling huge payouts to shareholders.

[fleur-de-lisa]

Companies Are On A Cheap Charm Offensive For Trump’s Tax Bill

https://www.huffingtonpost.com/entry/companies-trump-tax-bill_us_5a6f56b5e4b01fbbefb48a1e?ncid=inblnkushpmg00000009

Ever since President Donald Trump signed a massive corporate tax cut into law last month, some of the biggest American companies have been touting pay increases as evidence of profits translating into meaningful gains for workers. But there’s a problem with this spin: Nearly all of the companies involved, from Walmart to Wells Fargo, were wildly profitable before the legislation passed, and the benefits they’re now promoting constitute just a tiny fraction those profits. Compared with the massive gains analysts expect to accrue to shareholders as a result of the new tax law, these perks really are, as House Minority Leader Nancy Pelosi (D-Calif.) said earlier this month, little more than “crumbs.”

Whatever revenues corporations have left after paying for workers, supplies and other costs of doing business ― including taxes ― gets booked as corporate profit, enriching the company’s owners. Nothing in the tax code prior to the GOP overhaul prevented companies from turning over any of these profits to their employees in the form of higher wages or bonuses. But by slashing the corporate tax rate rom 35 percent to 21 percent, the bill did make sure that a much larger share stays with shareholders. For some companies, the difference could mean billions of dollars a year.

Consider Verizon, HuffPost’s parent company, which said it would give all its workers 50 shares, which will vest over two years. With about 161,000 employees, at $54 per share at the time of the announcement, the total benefit would come to about $434 million. Since the company said it would save $3.5 billion to $4 billion from the tax bill, the stock award represents somewhere between 10 percent and 28 percent of Verizon’s annual tax savings, and just 1.4 percent of the company’s profit in 2017.

Meanwhile, Walmart, the nation’s largest private employer, announced it would spend an additional $700 million over the next two years on employee pay, thanks to the tax bill. That’s less than 5 percent of the company’s most recent annual profit. Walmart announced the closure of 63 Sam’s Club stores, which will result in hundreds of layoffs, the same week.

[asiliveandbreathe]

1. Thus - all the moves at Wall Street - why not take some money off the table..cash in

sure is plenty where that came from...more to come....I just hope you all enjoy your time on vacation on your yachts...of course..Italy, Monaco, Greece,