Backers of the new federal tax reform law say corporations are using the savings to give their workers raises and bonuses. But independent studies from Bloomberg and Morgan Stanley report a much larger share of tax cut savings is going to company shareholders through stock buybacks.
Republican Congressman Rodney Davis says it’s too early to draw a conclusion.
“We are just in the first quarter of this next year. I think you’ll see more companies continue to invest ... in employees and capital projects. And - we’re going to see our economy continue to grow because families have more money in their pockets.” Davis said.
Davis made his comments in an interview on the public radio talk show, The21st. Earlier, the 13th District congressman from Taylorville says he met with employees at Best Buy and CVS stores in Champaign. Both retail chains say they’re passing along tax savings to their workers in the form of wage increases or bonuses.
