Walgreens To Spend Money From Trump Tax Cut On Itself, Not Jobs As GOP Promised, Walgreens Pays Only 7.6% Tax Rate
Walgreens announced that it plans to buy back up to $10 billion of its own stock shares and raise its dividend.
This news contradicts the many promises from Republican leaders and President Donald Trump that massive corporate tax breaks would magically cause companies to create jobs.
The Wall Street Journal notes:
U.S. companies have been buying back their shares at an aggressive pace, raising questions about the way that the new corporate tax cuts are being used.
Walgreens said that it was only paying a tax rate of 7.6%, compared to 12.4% in the same quarter in 2017 (under President Obama’s tax plan).
Walgreens Executive Vice President and Global CFO James Kehoe bragged about the stock buyback: “Our new $10 billion share repurchase program demonstrates our commitment to return cash to stockholders in the form of dividends and share repurchases over the long term.”