The buyback bonanza occurred during the first full quarter after President Donald Trump signed into law a massive corporate tax cut that was supposed to lift business spending on job-creating investments. The tax law reduced the corporate tax rate to 21% from 35% and gave companies a break on taxes owed when returning foreign profits. Buybacks are clearly booming, more than 5.5 million employees received a tax cut bonus, pay raises or 401(k) hikes, according to the White House. But business spending -- the stated goal of the tax law -- has not significantly accelerated, at least not yet. Some economists aren't surprised that the early windfall of the tax cuts is going to Wall Street, instead of Main Street.

Source: CNN May 20, 2018 11:41 UTC