Chief financial officer Maria Henry said the company’s gains from the tax overhaul would help offset the cost of the restructuring plan. The company had an effective tax rate of 28.6 percent in 2017, and the rate would drop to between 23 and 26 percent in 2018 as a result of congressional action, boosting year-over-year earnings growth by 6 points, she told analysts during a conference call to discuss recent financial results.In other words, it's taking tax savings to its shareholders' bottom line, not to workers. Note: The one-time bonuses and low-wage worker pay increases announced in some places have been a tiny fraction of the windfall from the tax cut.
“We also anticipate ongoing annual cash flow benefits from tax reform,” Henry said. “That provides us flexibility to continue to allocate significant capital to shareholders while we also fund increased capital spending and our restructuring program over the next few years.”