Republicans say their tax cut plan will spur additional job creation and higher wages for workers. But corporate CFOs and institutional investors think otherwise, according to two small new surveys.
In a new CNBC Global CFO Council survey, about 8 percent of corporate finance chiefs from large companies — apparently two out of 24 respondents — said that the tax overhaul would increase employee wages next year. Just 4 percent, or 1 out of 24, said it would “most likely” increase headcount.
Half of the CFOs said the tax changes would benefit large corporations most if it becomes law, and nearly three in four said their company supports at least one version of the overhaul.
Similarly, a survey of 113 hedge fund managers and large investors by industry data provider BarclayHedge found that while nearly 70 percent think the tax plan will be good for the stock market, only 12 percent said companies will expand their operations or hire new workers.
Almost half said they expect corporations to use their tax savings to buy back shares or raise dividends, while 23 percent said they expect increased merger and acquisition activity.
About 10 percent said they expect companies will use their tax savings to increase spending on “labor saving automation.”