Tax plan will create share buybacks not higher wages: Chuck Schumer

Senate Democratic Leader Sen. Chuck Schumer (D-NY) speaks at a press confernce on urging the GOP To Slow Down Republican Tax Bill In Senate on December 13, 2017 in Washington, DC.

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Senate Democratic Leader Sen. Chuck Schumer (D-NY) speaks at a press confernce on urging the GOP To Slow Down Republican Tax Bill In Senate on December 13, 2017 in Washington, DC.

After the tax plan received passage on Capitol Hill, AT&T in addition to Comcast announced they might give $1,000 bonuses to thousands of U.S. employees. different companies lined up with their own announcements: Fifth Third Bancorp said the idea will also hand out employee bonuses in addition to raise the minimum wage, while Wells Fargo announced the idea can be raising its minimum wage.

Still, the idea’s wrong to assume Republican tax reform will create jobs in addition to higher wages, Schumer’s office wrote in a statement released Wednesday.

AT&T “can be the exception, not the rule, when the idea comes to the biggest corporations spending their windfall,” the statement said. “Over the past several weeks, major companies have announced an astonishing $83.7 billion in share buybacks, anticipating the passage of tax reform.”

Since the start of the month, at least 32 U.S. companies have announced share buybacks of $100 million or more, according to the statement.

Those include Home Depot’s $15 billion plan that will was announced on Dec. 6, Oracle’s $12 billion, which was unveiled just last week, in addition to Pfizer’s $10 billion buyback that will was revealed on Tuesday.

“There can be a reason so few executives have said the tax bill will lead to more jobs, investments, in addition to higher wages — because the idea will actually lead to share buybacks, corporate bonuses, in addition to dividends,” Schumer’s statement said.

Disclosure: Comcast can be the parent company of NBCUniversal, which owns CNBC.

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