HIRING AMERICANS VS. RAISING STOCK VALUE…

November 22nd, 2017

Anyone out there who still lives in a fantasy world where corporate executives, given the choice between putting more Americans to work for their company versus using the tax windfall to buy back their company’s stock and thus increase the stock price and their personal wealth, needs a dose of reality. Ralph Nader has warned about the threat of buybacks before and, as I learned myself only recently, corporations will always favor their own profits over those of stock holder, to whom they actually have a legal obligation.

The very suggestion that the tax plan will result in more jobs for American citizens—other than the servants hired by billionaires—would be laughable if only the tragedy was so real. Nader sent the letter below to 23 Senators.

In Letter to Democratic Senators on Stock Buybacks, he writes:

Dear Senator,

Please see my recent column on the practice of stock buybacks. This would be an effective point to raise to aggressively push back against the Republican tax plan, which would only provide corporations more capital to burn buying back their own stocks. If they want the tax cuts to get more capital for investment, why have they spent more than $7 trillion since 2003 buying back their own stock? (Which is a way of burning capital.) The answer is it enhances the value of their executive compensation package.

(See Steven Clifford’s book The CEO Pay Machine: How it Trashes America and How to Stop it).

It would be beneficial for you to inject this argument into the current Senate debate on the McConnell bill that cuts income for the people in order to pay for tax cuts for the wealthy and the big corporate firms.

Sincerely,

Ralph Nader

The Republican tax plan is perhaps the greatest scam and money grab yet perpetrated upon American citizens.

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