Few large US companies say they'll use tax savings to boost wages, CNBC survey finds
Source: CNBC
John W. Schoen | Fred Imbert | Thomas Franck | Tucker Higgins Published 21 Hours Ago Updated 4 Hours Ago
Despite a handful of high-profile announcements, the recent cuts in corporate taxes haven't yet had a meaningful impact on American companies' plans to boost investment or raise workers' pay, a CNBC survey of large companies found.
The latest announcement came Wednesday with the news that Apple plans to repatriate billions of dollars stashed overseas. The company said it will make a $350 billion "contribution to the US economy," while promising to create 20,000 new jobs and open a new campus. Apple did not provide details on specific investment or plans to boost compensation for current employees.
Proponents of the recent tax reform law, which cuts the top corporate tax rate from 35 percent to 21 percent, argue that a significant portion of those savings will flow to workers in the form of higher wages. The Trump administration has estimated that the average American worker could see their annual wages grow by $4,000 as a result of the drop in corporate taxes.
So far, however, those pay increases have been few and far between. With a few exceptions, companies that have announced specific plans are offering one-time bonuses in place of permanent wage increases.
Read more: https://www.cnbc.com/2018/01/17/few-large-companies-say-theyll-use-tax-savings-to-boost-wages-cnbc-survey-finds.html
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