Marco Rubio: GOP ‘Went Too Far’ To Help Corporations, Tax Bill ‘Won’t Create Economic Growth’
In an interview published Friday by Florida-based News-Press, Senator Marco Rubio admitted that he and his Republican colleagues “probably went too far” cutting corporate taxes in their just-enacted overhaul of the tax code.
The GOP tax bill reduced the corporate tax rate from 35 percent to 21 percent, insisting that the corporate tax cut would yield higher wages and more jobs for U.S. workers.
But Senator Rubio admitted in his interview that the controversial tax legislation “won’t create dramatic economic growth.”
Rubio told News-Press that he expects corporations to buy back shares to increase their stock price with proceeds from the bill.
“You’re going to see a lot of these multinationals buy back shares to drive up the price,” Rubio remarked. “Some of them will be forced, because they’re sitting on historic levels of cash, to pay out dividends to shareholders,” Rubio said before adding: “That isn’t going to create dramatic economic growth.”
Rubio is right. Several U.S. corporations that supported the tax bill are planning to funnel the savings into benefits for executives, board members and shareholders.
At a corporate event, White House chief economic adviser Gary Cohn was visibly stunned when only a handful of CEOs in attendance indicated they would reinvest tax savings in hiring and expanding.
Sadly, Rubio’s revelation came too late. the damage is already done.