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Saturday, Oct 20, 2018
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Marco Rubio: GOP tax bill may have gone ‘too far’ in helping corporations

Marco Rubio is not totally satisfied with the just-passed GOP tax bill. But the U.S. Senator says it's "significantly better" than the current tax code.

In a wide-ranging interview with Southwest Florida's News-Press, Rubio weighed in on immigration policy, the Robert Mueller probe and the state of America's Republican-controlled government.

But the newsiest part of the interview came when Rubio was asked about the particulars of tax reform.

"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 said. "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."

The idea that a steep cut in the corporate tax rate may not create tons of new jobs appears to be contra to President Trump's messaging on the sweeping legislation.

On October 31, Trump tweeted, "I hope people will start to focus on our Massive Tax Cuts for Business (jobs) and the Middle Class (in addition to Democrat corruption)!"

Of course, individuals will also see significant tax cuts under the new law. But the individual cuts expire in 2027, and the corporate cuts are permanent.

The Tax Foundation, a non-partisan tax policy think tank that generally has an optimistic view of the effect of taxes on economic growth, projected that the Tax Cuts and Jobs Act will create 339,000 jobs and cause a yearly spike of 0.29 percent in GDP over the next decade.

The Foundation also projected the bill will cost $448 billion after economic growth is added to the $1.47 trillion in lost tax revenue.

Although Rubio had some issues with the legislation, he said, he voted for the tax bill because it does more good than harm. Specifically, Rubio pointed to the bill's expansion of the child tax credit, for which he had long fought, as a positive example.

When asked whether voters would punish the GOP for passing a relatively unpopular piece of major legislation, Rubio said he believes people will learn to love their tax cuts.

"If I'm against the tax bill because I don't think it'll actually cut my taxes and I get my first paycheck in February and it has $200 in there that didn't used to be there, I'm going to notice that," Rubio said.

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