CORPORATE TAX CUTS WENT INTO
EFFECT THIS YEAR, THERE HAS
BEEN AN ONGOING DEBATE ON WHO
BENEFITED FROM THEM.
IN A RECENT INTERVIEW WITH THE
ECONOMIST, MARCO RUBIO MADE A
STATEMENT THAT STUNNED FELLOW
REPUBLICANS.
HE TOLD THE MAGAZINE, THERE IS
A LOT OF THINKING ON THE RIGHT
THAT IF BIG CORPORATIONS ARE
HAPPY, THEY ARE GOING TO TAKE
THE MONEY THEY SAVE AND
REINVEST IT IN AMERICAN
WORKERS.
IN FACT, THEY BROUGHT BACK
SHARES, A FEW GAVE BACK BONUSES
AND THERE IS NO EVIDENCE
WHATSOEVER THAT THE MASSEY --
MONEY HAS BEEN MASSIVELY POURED
BACK INTO THE AMERICAN WORKER.
I HAD A CHANCE TO ASK SEN.
MARCO RUBIO ABOUT THOSE
COMMENTS RECENTLY AND HERE IS
WHAT HE HAD TO SAY.
WHEN YOU LOOK AT THE WHOLE
INTERVIEW, I SAID I THINK IT
HAS INCREDIBLE BENEFITS.
INCLUDING THE CORPORATE TAX
CUTS.
WHAT I WAS TALKING ABOUT IS
THERE WAS A POINT WHERE THEY
HAD LOWERED THE CORPORATE RATES
FROM 35 TO 20 AND I SAID I WANT
TO LOWER IT ALSO.
BUT INSTEAD OF 35 TO 20, LET'S
GO FROM 35 TO 20.9 AND USE THAT
.9 NOT TO GIVE TO MULTINATIONAL
CORPORATIONS, BUT TO FULLY
EXPAND THE CHILD TAX CREDIT FOR
WORKING FAMILIES.
NO ONE CAN TELL ME THAT THAT .9
WOULD NOT HAVE BEEN BETTER IN
THE HANDS OF THOSE WORKING
FAMILIES THAN IN THE HANDS OF
APPLE OR SOME OF THESE OTHER
MULTINATIONAL CORPORATIONS WHO
FRANKLY ARE INCREASING NOT
INVESTING IN PEOPLE, BUT THEY
ARE INVESTING IN AUTOMATION OR
MACHINES OR STOCK BUYBACKS.
THERE IS NO EVIDENCE THAT
THE .9 IS GOING DIRECTLY TO
WORKING FAMILIES.
THERE IS EVIDENCE THAT IF WE
HAVE FULLY EXPANDED THE CHILD
TAX CREDIT, WE WOULD HAVE BEEN
HELPING WORKERS.
I THINK IT GETS TO A BROADER
POINT THAT WE HAVE TO CONFRONT.
IN THE 21ST-CENTURY ECONOMY,
LARGE, MULTINATIONAL
CORPORATIONS DO NOT BEHAVE
ECONOMICALLY THE WAY THEY ONCE
DID.
IN THE PAST, IF A BIG COMPANY
WITH MULTINATIONAL OPERATIONS
PUBLICLY TRADED AND HAD A
SURPLUS CASH, THEY WOULD USE IT
TO REINVEST IN HIRING NEW
PEOPLE.
IN THE 21st CENTURY,
COMPANIES ARE INCREASING
PRODUCTIVITY NOT ALWAYS BY
HIRING NEW PEOPLE.
IT'S BY INVESTING IN AUTOMATION
AND MACHINES.
WE NEED TO RECOGNIZE THAT THE
ECONOMY WE ARE IN TODAY IS NOT
THE SAME AS 1980 OR 1990, OR
EVEN 2005.
OUR TAX POLICIES NEED TO TAKE
THAT INTO ACCOUNT.
LET'S DIG A LITTLE DEEPER
INTO THIS.
JOINING ME NOW IS CURTIS
HUNTER.
HE IS A MEMBER OF THE CORPORATE
AND SECURITIES PASTOR --
PRACTICE GROUP. THANK YOU VERY
MUCH FOR COMING IN.
YOU ARE A REPUBLICAN?
AND A TRUMP SUPPORTER?
I AM.
LET'S TALK ABOUT SEN.
MARCO RUBIO'S COMMENTS.
WHAT WAS YOUR IMPRESSION?
I READ YOUR INITIAL COMMENTS IN
THE ECONOMIST AND HE IS TRYING
TO CLEAN UP, BUT HE STILL SEEMS
TO BE SUGGESTING THAT THE MONEY
ISN'T REALLY FALLING TO THE
WORKERS.
HE IS SUGGESTING A LOT OF
THINGS, BUT WHEN I FIRST READ
THE ARTICLE, I WAS HOPING IT
WAS A MISINTERPRETATION OF HIS
WORDS.
A FEW DAYS AFTER THAT, I THINK
HE BACKED OFF, AND SMOOTHED IT
OUT.
HE SAID YES, THE TAX CUTS HAVE
BENEFITS, BUT IT'S NOT DOING AS
MUCH AS IT COULD.
AGAIN, ONE THING THAT STANDS
OUT TO ME AS WE ARE IN A
MIDTERM ELECTION YEAR.
FOR A REPUBLICAN TO NOT BE
SINGING THE PRAISES OF ALL THE
BENEFITS OF THE TAX CUT AND
INSTEAD TRYING TO LOOK OUT --
AT WHAT IT'S NOT DOING WAS
SOMEWHAT SURPRISING FROM SEN.
MARCO RUBIO.
LET'S GO TO THE BASIC POINT
OF.
HE DID SAY HE THINKS THE TAX
CUTS OVERALL WERE GOOD AND HE
WAS SUPPORTIVE, BUT DO YOU
BELIEVE THAT THE TAX CUTS HAVE
BENEFITED THE WORKERS IN THE
COMPANY'S AS MUCH AS IT HAS
BENEFITED THE COMPANIES
THEMSELVES?
I DO.
I THINK IT MAY HAVE BEEN THE
DAY THAT THEY VOTED ON THE TAX
BILL, SEN.
MARCO RUBIO MADE A QUOTE THAT
THE AMERICAN WORKER IS HEARING
IN THE MEDIA.
COME FEBRUARY AND MARCH WHEN
THEY START GETTING TO $300
EXTRA IN THE PAYCHECK, THAT'S
WHAT THEY WILL FOCUS ON.
HE ALSO MENTIONED THAT FURTHER
DOWN THIS YEAR, IN NOVEMBER,
THE AMERICAN WORKER IS GOING TO
LOOK AT ALL THE MONEY THEY MADE
THROUGH THE YEAR, INSTEAD OF
LISTENING TO THE FACT THAT THE
TAX CUTS AREN'T GOING TO
BENEFIT THEM.
I THINK IT'S PREMATURE FOR
HIM TO JUDGE WHETHER OR NOT
IT'S BENEFITING THE AMERICAN
WORKER.
I THINK IT IS DRASTICALLY
BENEFITING THEM.
MOST, IF NOT ALL, WORKERS
RECEIVED SOME BUMP IN THEIR PAY
IN FEBRUARY OR MARCH, WHICH
WILL CONTINUE.
IT'S BECAUSE OF THE PERSONAL
TAX RATE, NOT BECAUSE OF THE
CORPORATE TAX RATE.
IT'S FROM BOTH STANDPOINTS.
THE INCOME TAX STANDPOINT, THEY
GET THE BENEFIT OF INCREASE IN
PAIN NOW.
LET'S SAY FROM THE CORPORATE
TAX POINT, DO YOU SEE LOWERING
IT FROM 35% TO 21 PERCENT -- 21%
BENEFITED WORKERS AND
EMPLOYEES?
IT DID AND WE SAW THE
ENTHUSIASM BEFORE IT WAS EVEN
SIGNED.
COMPANIES STARTED GIVING
BONUSES TO THEIR EMPLOYEES,
WAGES STARTED TO INCREASE.
EVEN BEFORE THE BILL WAS
PASSED, WE SAW THE BENEFITS
COMING.
I THINK THAT HAS CONTINUED. AT
35%, WE WERE AT A VERY
DISADVANTAGEOUS POSITION
LOOKING AT THE INDUSTRIALIZED
WORLD.
WE HAVE ONE OF THE HIGHEST
CORPORATE TAX RATES OF THE
WORLD.
NO CORPORATIONS WERE PAYING
35%.
BECAUSE THEY ARE MOVING
EVERYTHING OVERSEAS.
THE INCENTIVE OF LOWERING IT IS
BRINGING THOSE FUNDS AND JOBS
BACK THAT WENT OVERSEAS.
THAT WAY LARGER CORPORATIONS
WON'T HAVE TO PAY HIGH TAXES.
BRING THEM BACK HERE, AND ON
TOP OF THAT, YOU HAVE THE
INCENTIVE OF COMPANIES. YOU
DON'T REALLY LOOK AT WHAT
COMPANIES ARE DOING WITH THE
CASH NOW, IT TAKES TIME.
THERE ARE DIFFERENT GROUPS OF
AMERICAN TAXPAYERS, BUT ONLY
4.2% OF WORKERS WERE GETTING
BONUSES OR WAGE HIKES BECAUSE
OF THE CORPORATE TAX CUTS.
THAT'S ROUGHLY 6.5 MILLION
WORKERS, IS A SMALL PERCENTAGE
OF PEOPLE WHO HAVE SEEN A
DIFFERENCE FROM THE CORPORATE
TAX RATE BEING LOWERED.
MY POINT IS, IT'S TOO EARLY
AND IT'S TOO PREMATURE TO JUDGE
THE NET EFFECT OF THE CORPORATE
TAX RATE BEING REDUCED TO 21%.
WHAT CORPORATIONS DO FROM AN
ECONOMY STANDPOINT AND THE
EXTRA CASH THAT THEY HAVE IS
NOT WHAT YOU LOOK AT.
YOU LOOK AT THE BEHAVIORAL
CHANGES IN THESE COMPANIES.
WHAT THEY DO WITH THE FUNDS
OVER A LONG PERIOD OF TIME.
INVEST IT BACK IN THE COMPANY.
BUYING BACK SHARES DOESN'T
REALLY BENEFIT THE WORKERS,
RIGHT?
A LOT OF THEM, BUT THEY CAN
DO BOTH AND MULTITASK.
THEY CAN PAY BENEFITS OR
DIVIDENDS TO SHAREHOLDERS.
A LOT OF THE EMPLOYEES OF THESE
COMPANIES, THE AMERICAN
WORKERS, THEY ARE RECEIVING
DIVIDENDS FROM THE SHARES.
YOU HAVE GOT THAT GOING AND YOU
HAVE GOT THE INCENTIVIZED
CORPORATION TO INVEST IN
RESEARCH AND DEVELOPMENT.
THAT IS THE CLEAR BENEFIT OF
THE REDUCTION IN THE CORPORATE
TAX RATE, WHICH WILL TAKE TIME
TO SEE.
I GUESS THAT'S THE BOTTOM
LINE.
IT MAY BE PREMATURE TO EVALUATE
ONE WAY OR THE OTHER WHETHER OR
NOT THE CORPORATE TAX CUTS ARE
HAVING REAL BENEFIT FOR THE
WORKERS.
I BELIEVE RUBIO IS A LITTLE
MORE SKEPTICAL AND DEMOCRATS
ARE MORE SKEPTICAL OF THAT.
HAS CATCHING POINT AND THAT IS
THE CHILD TAX CREDIT.
HE WILL NOT AND DOUBLED IT FROM
1000 THE CHILD TO 2000.
THE REFUNDABLE PART IS THE
BIGGEST ISSUE.
THAT IS THE AMOUNT OF THE
CREDIT OVER THE TAX LIABILITY.
SO THE TAX CUT BILL INCREASES
THAT FROM 1100 PER CHILD TO
1400 FOR CHILD.
PART OF THAT IS, AGAIN IF
YOU GIVE MONEY DIRECTLY INTO
WORKING FAMILIES, IT PROBABLY
HAS A BETTER IMPACT ON THE
ECONOMY.
THAT IS ALL THE TIME WE HAVE
NOW.
I KNOW WE PROBABLY LOST
PEOPLE BECAUSE WE ARE TALKING
TAX POLICY, BUT IT REALLY DOES
HAVE AN EFFECT.
THANK YOU SO MUCH FOR COMING
IN.