BIG TECH’S BIG LIE: INSTEAD OF HIRING, TECH COMPANIES SPENT TAX SAVINGS ON BUYBACKS | WHAT REALLY HAPPENED


BIG TECH’S BIG LIE: INSTEAD OF HIRING, TECH COMPANIES SPENT TAX SAVINGS ON BUYBACKS

Back in 2017, when they were making their supportive case for Trump’s tax cut and offshore tax repatriation holiday, the largest US technology companies promised they would go on hiring sprees and boost the economy. Just over a year after getting what they wanted, fund flow data shows that – contrary to Goldman’s recent calculations – these firms gave most of their huge tax savings to investors in the form of buybacks.

According to Bloomberg calculations, the top 10 US tech companies spent more than $169 billion purchasing their shares in 2018, a record 55% surge from the year before the tax changes. And, according to TrimTabs, the industry as a whole authorized the greatest number of share buybacks ever recorded, totaling $387 billion: more than triple the amount in 2017.

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