Cisco to use savings from GOP tax law to buy back shares

Cisco to use savings from GOP tax law to buy back shares
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The technology conglomerate Cisco says it will use savings it is getting from the Republican-backed tax law to buy back shares from investors.

The California-based tech company announced on Wednesday it would move a significant portion of cash to its shareholders over the next two years through increased dividends and buybacks.

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The move makes Cisco the first large-scale tech company to pass the benefits of the tax law directly to its investors, according to the Financial Times. 

“There’s a great deal of confidence on a global basis, probably a lot more than we have seen for a very long time,” Cisco's chief executive, Chuck Robbins, told the Financial Times. 

Cisco's stock shot up 7 percent after the announcement, according to CNN. 

The company said it plans to move $67 billion in foreign profits back to the U.S. 

Proponents of the tax law say the plan gives companies motivation to bring money abroad back to the U.S. 

CNN reports that Cisco's investors are set to experience a windfall of roughly $44 billion. 

President TrumpDonald John TrumpLondon terror suspect’s children told authorities he complained about Trump: inquiry The Memo: Tide turns on Kavanaugh Trump to nominate retiring lawmaker as head of trade agency MORE signed the Republican tax plan into law late last year. 

Various corporations such as Starbucks, Disney and JPMorgan Chase have announced new raises and benefits for their employees due to tax reform. Other companies have also announced stock buybacks.