TAX CUTS DO NOT PAY FOR THEMSELVES - II

Not long ago, I wrote about how corporate tax cuts are an inefficient way to stimulate the economy, using the 2004 "Tax Holiday" as an example when 81% of the repatriated money was used to buy back stock.*  Also I have shown why income tax cuts are an inefficient way to stimulate the economy.**

Now there is some confirmation by others from non-scientific polls that confirm that in this economic climate, any profits from business tax will not be used by many companies to increase investment in new facilities or increased employment.**

But at a gathering of chief executives hosted yesterday by the Wall Street Journal, business leaders called into question one of Cohn's top arguments for slashing the corporate tax rate to 20 percent.

When one of the Journal's editors asked the crowd if they planned to up their capital expenditure if the GOP's tax plan went through, only a smattering raised their hands.**

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There's little evidence to support the claim that tax breaks boost employment numbers.

A National Bureau of Economic Research study published in 2014  found "little evidence that corporate tax cuts boost economic activity" unless implemented in a recession.

Far from being short on cash, corporations are sitting on record amounts.***

Gary Cohn was said to be surprised at the response.

* http://stopcontinentaldrift.blogspot.com/2017/11/tax-cuts-do-not-pay-for-themselves.html
** http://stopcontinentaldrift.blogspot.com/2010/05/effectiveness-of-taxes.html
*** https://www.cnbc.com/2017/11/15/ceos-raise-doubts-about-gary-cohns-top-argument-for-cutting-the-corporate-tax-rate-right-in-front-of-him.html