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Marco Rubio has tax law regrets

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Marco Rubio has tax law regrets

Senator Marco Rubio, who was one of the final holdouts among Republicans on the fence regarding the GOP tax bill, said he has some regrets about the final version of the bill.

If I were king for a day, this tax bill would have looked different. I thought we probably went too far on (helping) corporations. By and large, you’re going to see a lot of these multinationals buy back shares to drive up the price. Some of them will be forced, because they’re sitting on historic levels of cash, to pay out dividends to shareholders. That isn’t going to create dramatic economic growth. (But) there’s a lot of things in the bill that I have supported for a long time (such as) doubling the Child Tax Credit. And it is better – significantly better – than the current code.

My Take

Rubio is wrong. This new law is going to be a major catalyst for dramatic economic growth. His concerns that the corporate tax cuts may have gone too far is not based on any economic principles but on the talking points he’s being fed by someone in his office. Yes, there will be money that goes to shareholders instead of consumers or employees. That’s part of the way the game works. If he wanted to limit the benefits to the end users and end distributors without benefiting the top level funding sources, he should live in a socialist society. That’s the only fiscal way to achieve his goals.

Reference

Sen. Marco Rubio expresses doubts about tax bill: ‘probably went too far’

http://www.theblaze.com/news/2017/12/29/sen-marco-rubio-expresses-doubts-about-tax-bill-probably-went-too-farSen. Marco Rubio (R-Fla.) expressed public doubts on Friday about the economic benefits of the tax bill he voted for and said the bill “probably went too far” to protect corporations.

In an interview with a Florida newspaper, Rubio praised some aspects of the tax bill, but expressed doubts about the extent of the cuts to the corporate tax rate in particular. The bill, which passed with no Democratic support, lowered the corporate tax rate to 21 percent from 35 percent.

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1 Comment

1 Comment

  1. Alpha

    December 29, 2017 at 7:33 pm

    The reason companies pay dividends is that it increases the value of their stock (by rewarding the investors who bought the stock) and allows them in the future as needed to issue more stock for acquisitions, expansions, etc. Same thing with stock buy-backs. Moreover, the people who then get those dividends pay taxes on them (good for the government), buy other or the same stock with them (increasing their wealth and capital availability) or spend it on buying stuff (driving demand and economic expansion). All these things are good. Rubio is a dolt for not understanding it.

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