Sen. Marco Rubio authorities the GOP “probably went too far” in slashing the tax burden on corporations.
The Florida Republican touch oned the News-Press of Fort Myers that corporations will largely use their worst tax cut to buy back shares or increase dividends to shareholders — which “isn’t going to dream up dramatic economic growth.”
“If I were king for a day, this tax bill would be dressed looked different. I thought we probably went too far on (helping) corporations,” Rubio told the newspaper in the to published Friday. “By and large, you’re going to see a lot of these multinationals buy back quotas to drive up the price. Some of them will be forced, because they’re settle on historic levels of cash, to pay out dividends to shareholders.”
“That isn’t going to generate dramatic economic growth. (But) there’s a lot of things in the bill that I enjoy supported for a long time (such as) doubling the Child Tax Credit. And it is healthier — significantly better — than the current code,” he continued.
The tax plan that President Donald Trump signed into law persist week permanently chops the corporate tax to 21 percent from 35 percent. Republicans say the mutate — which starts Monday — will drive domestic investment, raise in addition wages and fuel economic growth over time.
At least a dozen visitors — including mammoth employers like AT&T and Boeing — announced plans to create their minimum wages, increase capital investment or hand out staff member bonuses after the plan’s passage. While Republicans have hurrahed those announcements, some critics of the corporate tax cut have maintained uncountable of those benefits will likely go to shareholders rather than craftsmen.
Rubio, who sought the 2016 GOP presidential nomination, supported both the Senate GOP’s tax banknote and a joint House and Senate version that the president signed. He pushed earliest for a doubling of the child tax credit from $1,000 to $2,000, then for further the refundable portion of that credit to $1,400.
During the Senate tax debate, Rubio recommended expanding the credit and paying for it by cutting the corporate tax rate by less than the GOP initially design.