(National Sentinel) Swamp Thing: Despite the fact that GOP Sen. Marco Rubio of Florida voted for the recently passed tax reform bill pushed by President Donald J. Trump, he is now echoing a claim most Democrats have made about the legislation.
As Fox News reported, Rubio says he now believes that the corporate tax cut — which lowered the top rate from 35 percent to 21 percent — was too deep.
In addition to the rate cuts, the legislation also provided additional incentives and economic benefits, all designed to spur expansion and job growth.
“If I were king for a day, this tax bill would have looked different,” Rubio said in an interview with The Fort Myers News-Press.
While calling the legislation “significantly better” than what had existed beforehand, Rubio said he doesn’t think the corporate benefits it establishes will achieve maximum economic growth.
“By and large, you’re going to see a lot of these multinationals buy back shares to drive up the price,” Rubio predicted. “Some of them will be forced, because they’re sitting on historic levels of cash, to pay out dividends to shareholders.”
He claimed using an influx of capital in that way “isn’t going to create dramatic economic growth.”
Supply-side economists disagree, saying they believe the legislation’s tax breaks to corporations will cause them to reinvest in their businesses, which will serve as a benefit to the economy as a whole.
But Rubio said that buying back shares is one way corporations could use their extra money without it having an immediately noticeable impact on the economy.
In November Trump’s chief economic adviser, Gary Cohn, held a forum with prominent business CEOs and attempted to make the administration’s point. But it seemed to backfire when just a few in the audience raised their hands when asked which of them planned to increase capital investments under the new tax structure.
That said, following passage of the legislation, several major corporations announced wage increases and employee bonuses, noting they would be expanding in the coming years as well.
As for ordinary Americans, Rubio said time will tell whether or not they like the tax reform measure. He said when Americans begin seeing more money in their paychecks, that will help them form an opinion.
“By the time we get to November of next year, their opinion about the tax bill is not going to be based on media coverage,” Rubio said. “It’s going to be based on what their paycheck is telling them.”
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