Maybe. Maybe not. Corporations may decide to take the bounty & indulge in share buybacks & dividend increases in place of jobs & new product investment.
When in doubt, American Management will always take the short-term fix.
Share buybacks rapidly increase share prices. That increases the wealth of every person that holds IRA’s or invests in mutual funds or has a pension.
Increased dividends are sent to stockholders. These are anyone that holds stock in companies and those that have IRA’s and Pension funds invested in mutual funds and stock portfolios.
These people spend their dividends and that too spurs the economy.
It is much more likely that a vast majority of corporations will use the money to invest in new plant and equipment as the bill allows for immediate expensing on new plant and equipment. That means instead of expensing a new press or plant over the decades of its’ useful life, a corporation could bring $50 million back from Ireland or Israel and invest it in a new set of production presses in Ft. Wayne, IN and instead of paying 39% tax off the top, they will be able to pay nothing as they would be able to expense the entire amount right away.
They avoid both the original 39% corporate tax AS WELL as the 21% new corporate tax because they do not have to expense the unit $2.5 million dollars a year over the next 20 years of the press equipments expected life.
This account trick just added hundreds of billions if not trillions of dollars into the domestic economy by incentivising corporations to invest in new plant and equipment, particularly since they can do so with profits they retain overseas and can do it tax free.
This is a major part of the bill that most people seem to be overlooking.