Few large companies say they’ll use tax savings to boost wages, CNBC survey finds

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Tim Cook, chief executive officer of Apple Inc.

Despite a handful of high-profile announcements, the recent cuts in corporate taxes haven’t yet had a meaningful impact on American companies’ plans to boost investment or raise workers’ pay, a CNBC survey of large companies found.

The latest announcement came Wednesday with news that Apple plans to repatriate billions of dollars stashed overseas. The company said it will make a $350 billion “contribution to the economy, while promising to create 20,000 new jobs and open a new campus. Apple did not provide details on specific investment or plans to boost compensation for current employees.

Proponents of the recent tax reform law, which cuts the top corporate tax rate from 35 percent to 21 percent, argue that a significant portion of those savings will flow to workers in the form of higher wages. The Trump administration has estimated that the average American worker could see their annual wages grow by $4,000 as a result of the drop in corporate taxes.

So far, however, those pay increases have been few and far between. With a few exceptions, companies that have announced specific plans are offering one-time bonuses in place of permanent wage increases.

Of the 100 biggest companies by market capitalization on Jan. 4, roughly half did not respond to CNBC’s multiple requests for comment on the impact on the tax bill on their plans for investment or worker’s paychecks.

Another 21 responded but had no comment. The same number responded with general comments that did not include specific details on investment or worker compensation.

Only 9 companies in the S&P 100 contacted by CNBC said they have specific plans to use some of the money saved from the corporate tax cuts to boost worker pay or invest in facilities or charitable causes.