A number of corporate giants have said they would return to shareholders any profits they get from the corporate tax cuts proposed in the Republican Party's tax plan, Bloomberg News reported, underestimating Republican claims that revenues will quickly reach workers. Braindumps4IT 200-150 Braindumps
Comments from the company's executives, including those of Cisco Systems Inc., Pfizer Inc. and Coca-Cola Co., come after the White House published a document last month arguing that a cut in the tax on Companies would increase wages.
The chief executive of Amgen Inc. said in a call in October that the company is "actively returning capital in the form of a growing dividend and repurchase."
"And I hope we continue," said Robert Bradway on the call.
These comments were echoed by executives such as Coca-Cola CEO James Quincey, Pfizer CFO Frank Amelio, and Cisco CFO Kelly Kramer, according to Bloomberg.
Kramer said this month that after the tax cut, the company "will be able to become much more aggressive in repurchasing shares."
Senate Republicans are expected to deliver a key procedural vote on Wednesday afternoon to begin the debate on tax reform, but the moment has slipped a bit since lawmakers are struggling to make last-minute adjustments.
Earlier this month, White House chief economic adviser Gary Cohn was surprised by the fact that few CEOs said they planned to invest more if the Republican Party's tax plan was approved.
"If the tax reform bill is approved, do you plan to increase the investment, the investment of your company, the capital investment?" An editor asked during an event for the CEO Council of The Wall Street Journal.
People were asked to raise their hands.
When hands were raised, Cohn asked, "Why do not you raise your other hands?"
Kevin Hassett, chairman of the Council of Economic Advisers, said in a call last month that the main reason why lowering the corporate tax rate would boost wages is because doing so would make it less expensive for companies to invest in capital assets like machines.
"More assets such as machines allow workers to produce more, and when workers can produce more, companies can pay more to their workers," he said last month.
