WE NEED TO PASS THE BILL TO FIND OUT WHAT'S IN IT

Haven't we heard this before that "We Need To Pass The Bill To Find Out What's In It?"  Nancy Pelosi famously said this about the lumbering ACA Healthcare bill.  That bill was broadly discussed repeatedly, amended, etc. in regular order.  In contrast, the current tax cut bill has been rapidly thrown together and it seems it will be passed without discussion.

It is a matter of faith among Republicans that tax cuts pay for themselves in spite of all the contrary evidence.  In a recent report of the JCT that the tax cuts will only pay about a third of themselves (a figure I think is optimistic), Republican Larry Lindsay (former adviser to George W. Bush) has said that the JCT claim is a fraud.*

Republicans point to the tax cuts of Jack Kennedy, Ronald Reagan, and George W. Bush as examples, but (1) these presidents never came close to balancing the budget, and (2) these tax cuts were done during recessions (on top of Federal deficits) when the cuts might have some significant positive effects.  In contrast, now we have a roaring economy. the stock market indices are setting new highs weekly, and we are near full employment.  But Republicans will fall into line.

Thus this tax cut bill and repatriation of off shore profits by companies is throwing gasoline on the fire.**

Still, CFOs are confident that the bill's reforms will have a positive impact on U.S. economic conditions. In addition, 70.9 percent agree (29.2 percent strongly) that corporate tax reforms will create more U.S. jobs, while 83.3 percent agree (20.8 percent strongly) that corporate tax reforms will stimulate U.S. economic growth.***
I find it hard to believe these CFOs are being honest because their companies are rolling in money and could be doing all these things now.  They do, however, have a different view on what will be done with repatriated funds.

At any rate, it has been pointed out that raising the corporate maximum tax rate to 25% instead of 20% would solve the JCT problem.   I have written that I think lowering the rate from 35% to 25% is worth a try to see what happens.****

With regard to the repatriation of overseas profits, only 12.5% of the CFOs canvassed indicated they will bring all overseas profits back home.***

(Click on figure to enlarge)

Asked what they would do with the repatriated funds, 29.2 percent say they would buy back stock, the most popular response. The percentage of those who use overseas cash to invest in new plants, equipment or technology: 20.8 percent, compared to 12.5 percent who would raise dividends. Only 8.3 percent plan to use repatriated cash to increase headcount.***

Note: As others have said, if we allow companies to bring back profits at especially reduced rates every 10-15 yrs, isn't that an incentive to merge with  overseas companies?
The tax breaks for bringing home such offshore profits “confirm the central tenet of tax planning that a tax deferred is a tax avoided,” said David Miller, a tax lawyer at Proskauer Rose. “For decades, U.S. multinationals have shifted profits abroad and deferred their taxes on them. If either of the tax bills pass, they will be rewarded for doing so."(https://www.nytimes.com/2017/11/29/business/taxes-offshore-repatriation.html?_r=0)

* https://www.cnbc.com/2017/12/01/bush-tax-cut-architect-dismisses-jct-scoring-of-the-senate-tax-bill-a-fraud.html
** http://stopcontinentaldrift.blogspot.com/2017/11/pouring-gasoline-on-fire.html
*** https://www.cnbc.com/2017/11/22/cfos-say-corporate-tax-reform-will-create-jobs-but-may-not-help-wages.html
**** http://stopcontinentaldrift.blogspot.com/2017/11/corporate-taxes-cuts-unintended.html