>> Our tax cuts will restore America's competitive edge.>> President Donald Trump is selling his tax plan on a promise that it will encourage business to create jobs in the United States. But many of America's largest corporations say they would use a tax cut windfall for stock buybacks and other moves benefiting shareholders, not workers.
Reporter Mike Stone broke the story.>> I was listening to a Lockheed Martin conference call. The CFO was discussing what the company was thinking internally about how the changes in the corporate tax code would be used by the company to boost profits in an efficient way. There was no mention about building new factories, hiring more workers at that specific moment in the call.
I listened to other companies third quarter earnings calls, Honeywell, the industrial giant, Amgen, the drug maker. During the segment of the calls when they talked about tax reform, what was being discussed was returning cash to shareholders in the form of dividends, share buybacks and other ways to do shareholder friendly moves.
>> Trump's tax plan would slash corporate tax rates to 20% and allow multinational companies to bring back profits made overseas at a deeply discounted rate. Which Republicans say would encourage them to hire workers in the United States. But that could lead to a repeat of the so called repatriation holiday of 2004.
Hundreds of multinationals took advantage of a similar tax break to bring back more than $300 billion with no significant boost in US job creation. A Senate committee concluded that the tax holiday was a costly failure. Goldman Sachs researchers argued that Trump's tax plan would lead to the same result.
Smaller companies would see lower taxes under Trump's plan as well, but a Reuters survey of such firms found that would not affect their hiring plans, either.>> Reuters contacted more than 100 small companies, the places that Donald Trump says will be the engine for growth in the economy, the engine for hiring.
They did say those that got back about 17, that head count would not go up if tax reform were pushed through.