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Companies spending Trump tax cuts on themselves

Man walks by the New York Stock Exchange.
Man walks by the New York Stock Exchange. Photo: Spencer Platt / Getty Images

Trump has touted that the recent tax code overhaul would prompt companies to use extra funds to hike up their employees’ paychecks. While some companies have announced plans like this, others are using much of the extra cash to invest in their own companies by buying back shares, NYT’s Matt Phillips reports.

Why it matters: That’s an investment back into the companies which will likely enhance their stock prices, but it is “most likely to worsen economic inequality because the benefits of stocks purchases flow disproportionately to the richest Americans,” Phillips writes. The bottom line is what companies do with their extra wiggle room will determine how successful the tax code overhaul is for Republicans.