Sen. Marco Rubio says the GOP “probably went too far” in slashing the tax burden on corporations.
The Florida Republican told the News-Press of Fort Myers which corporations will largely use their major tax cut to buy back shares or increase dividends to shareholders — which “isn’t going to create dramatic economic growth.”
“If I were king for a day, This kind of tax bill could have looked different. I thought we probably went too far on (helping) corporations,” Rubio told the newspaper inside the interview published Friday. “By in addition to large, you’re going to see a lot of these multinationals buy back shares to drive up the cost. Some of them will be forced, because they’re sitting on historic levels of cash, to pay out dividends to shareholders.”
“which isn’t going to create dramatic economic growth. (however) there’s a lot of things inside the bill which I have supported for a long time (such as) doubling the Child Tax Credit. in addition to the idea will be better — significantly better — than the current code,” he continued.
The tax plan which President Donald Trump signed into law last week permanently chops the corporate tax to 21 percent by 35 percent. Republicans say the change — which starts Monday — will drive domestic investment, boost wages in addition to fuel economic growth over time.
At least a dozen companies — including mammoth employers like AT&T in addition to Boeing — announced plans to raise their minimum wages, increase capital investment or hand out employee bonuses after the plan’s passage. While Republicans have cheered those announcements, some critics of the corporate tax cut have maintained most of those benefits will likely go to shareholders rather than workers.
Rubio, who sought the 2016 GOP presidential nomination, supported both the Senate GOP’s tax bill in addition to a joint House in addition to Senate edition which the president signed. He pushed first for a doubling of the child tax credit by $1,000 to $2,000, then for increasing the refundable portion of which credit to $1,400.
During the Senate tax debate, Rubio proposed expanding the credit in addition to paying for the idea by cutting the corporate tax rate by less than the GOP initially intended.