On Wednesday, potential presidential candidate Mark Cuban stated that cutting the U.S. corporate tax rate would pose little to no effects regarding his decisions on investment.
The bills in front of both the U.S. Senate and the House of Representatives would reduce the corporate rate to 20 percent from the current 35 percent. President Donald Trump believes by dropping corporate and other taxes it would lift the economy.
Cuban stated that the tax rate as absolutely no impact in decisions on investing into small businesses. “Competition drives what I do in my businesses a whole lot more than tax rates. Amazon is going to affect a whole lot more companies and futures, as will Microsoft and Facebook and Google and other big companies, a lot more than a marginal tax rate,” Cuban said.
Economists argue the conservative or supply-side dispute of tax cuts. Alan Blinder, former vice chair of the Federal Reserve’s board of governors, stated that decades of data had been unsuccessful in proving any correlation between tax rates and succeeding growth. Dambisa Moyo, a global economist, believes that technology, immigration, and debt have more influence on economy growth than taxes. Mark Zandi, chief economist, stated that “taxes matter” and the tax policy has potential to advance long-term growth, but the House and Senate proposals were “very bad tax policy.”
Cuban claimed that reducing employment tax is an unsurpassedd approach to increasing growth as former President Barack Obama’s 2010 two percent payroll tax reduction. Employment taxes are paid both by workers and by employers.
Cuban once supported Trump, but later endorsed Hillary Clinton in the presidential campaign. Since October, he has told interviewers he is considering a presidential run for 2020.
“It’s a serious decision and it’s not one I have to make today,” Cuban said.
THE MORNING REPORT
Start your workday the right way with the news that matters most.