Here’s How U.S. Businesses Actually Used Their Tax Cuts

Source: Laura Davison, Bloomberg Businessweek, January 16, 2019

Republicans predicted a growth explosion while Democrats warned of fat-cat investors. Both sides were wrong.

On Jan. 1, 2018, the biggest, most sweeping U.S. corporate tax cut ever enacted went into effect. A year later, we’re able to see how businesses used all that extra cash.

The short answer: to buy back shares. The long answer is slightly more nuanced, but not by much.