Posted on 12/30/2017 6:12:11 AM PST by upbeat5
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 that 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 tax bill would have looked different. I thought we probably went too far on (helping) corporations," Rubio told the newspaper in the interview published Friday. "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," he continued. The tax plan that President Donald Trump signed into law last week permanently chops the corporate tax to 21 percent from 35 percent. Republicans say the change which starts Monday will drive domestic investment, boost wages and fuel economic growth over time.
(Excerpt) Read more at cnbc.com ...
The little ones are such pains in the butt...little Marco, Billy Kristol, little Georgie Steponanelephant...
Perhaps he can explain that to the hundreds of thousands of employees who are collecting bonus checks.
Or maybe all of the new hires will be interested.
That would all be TERRIBLE!!!!
- Marco Rubio
If I were king for a dayThanks for expressing your true feelings about Constitutional republican government, Marco.
Some will choose to do so. Others will choose other options. It's called Freedom. It's a really groovy thing, baby! Let's give it a try!
Of course he does. Rubio a homosexual Democrat.
You know Zerohedge is well left of center?
I will enjoy watching this story age, it will not go well for him.
P.S. How many companies have given raises, bonuses, announced expansions since the tax bill was enacted? 12? 24? many hundreds of franchises & Mom/Pop players??? You can make a chart look good by selective incorporation of data just like the Big 0’s unemployment numbers and the phony inflation charts.
Not sure which 5 year old sketched that graph, but it clearly has no basis in fact.
We’re supposed to believe that in the last year institutions and households investing in equities has declined?
Regardless of these types of comments, bill Nelson must go first. His brain was lost in space and he is worse than Dr. Smith.
I’m really sick of this lisping little back-stabber - already positioning himself as a 2020 alternative for the deep state.
Marco is more interested in big government, so of course he thinks that.
I am not saying they will not be growth due to the massive tax cut for corporations. Of course there will be. But corporations were flush with cash before the law was even signed. The public relations stunt by some with suddenly declaring that now (finally) they could give out bonus checks to average workers was a transparent and cynical ploy. Crumbs from the masters table in order to deflect that corporations reap the majority of the benefits of this tax law.
not if the anti-business, anti-rich, anti-growth environment is stopped by more freedom and more private property rights, which increases security of private property, which increases incentives to grow and expand
Marco,
Do you know how much economic activity will be generated by these lowered business tax rates? They will expand business, bring plants and HQ’s back to this country and HIRE people, LOTS of people. People from all walks of life will be able to find a job but more importantly, find better jobs with better pay.
As Ronald Reagan said, “The best social program is a job”. Lowering corporate and business taxes (which were way too high to begin with), will do that: bringing lots of jobs and career opportunities to everyone.
Expect to see this in all the ads for 2018. What a pos.
He’s a con-artist. Wasn’t he caught in Florida as a State Rep illegally using funds for his personal life? His comments on the tax cut sound like what a Democrat would say.
Someone should tell Little Marco that a corporation is a group of individuals.
“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.”
There’s no real economic difference between a share buyback and a dividend. To illustrate: imagine a company has $10bn in stock outstanding and $1bn in cash. It distributes the $1bn in a dividend ratably to all investors. Every investor gets cash equal to 10% of the value of their shares.
Alternatively the company can buy back 10% of its stock for $1bn. If every investor sold 10% of their shares to the company, they would each get 10% of the value of their shares in cash, and at the end they would still own the same % of the company they started out with. They would own fewer shares numerically, but because there are fewer overall shares of the company outstanding, the same stake in the company.
The differences between the two are mainly taxes (which are different for selling shares and receiving a dividend) and investor preference (you have to take a dividend but you don’t have to sell your shares into a buyback).
But my point is, share buybacks and a dividends are just two common means for a company to distribute cash to existing shareholders, and if Rubio thinks that a dividend is somehow good and a share buyback is somehow pointless, he is clueless.
“Little Marco staying true to form....”
Another brilliant, intellectual, Progressive genius.
IMHO
Had to stop right there. Obviously this is fake news and not worth the time.
Besides, who cares what Rubio thinks?
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