Republicans forced through a major tax overhaul bill just before Christmas, winning a narrow 51-48 vote in the Senate despite widespread public opposition to the legislation.
Polls showed that most voters thought the bill just benefitted the rich and analyses demonstrated that corporations, which received a massive tax rate cut, were perhaps the biggest winners in the bill.
Now, one prominent Republican lawmaker who supported the bill admitted the GOP bent over backwards to reward corporations.
Florida Senator Marco Rubio said the bill he and his Republican colleagues supported “probably went too far” to help corporations with a deep rate cut (slashing the 35 percent tax rate to 21 percent).
Rubio also admitted that corporations will largely use the tax cut to enrich shareholders, which won’t benefit the economy
“You’re going to see a lot of these multinationals buy back shares to drive up the price,” Rubio said in an interview with the News-Press of South Florida. “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.”
In the lead up to the vote, Republican lawmakers claimed that the corporate tax cut would trickle down to average Americans via higher wages and more jobs, though a number of corporate CEOs revealed that this might not have bee the case during a Wall Street Journal panel in November when asked about planned capital investments due to the tax bill.
Rubio had initially not supported the bill, but came around after the child tax credit was increased. He believes Americans will eventually support the bill.
“By the time we get to November of next year, their opinion about the tax bill is not going to be based on media coverage. It’s going to be based on what their paycheck is telling them,” Rubio said during the News-Press interview.
This article was published on reverepress.com