Of course, the entire motivation is exactly that, enrich shareholders
TRUMP ECONOMIC DIRECTOR GARY COHN SAYS IT’S FINE FOR CORPORATIONS TO USE TAX BREAKS TO ENRICH EXECUTIVES
Gary Cohn:
So look we’ve heard that numerous times.
If that’s our worst-case scenario, that companies repatriate their money, and they use it for share buybacks and dividends, what happens?
They buy back shares, they issue dividends.
They pay the repatriation tax.
We get another 20 percent tax on capital gains or dividends.
And then the people that get that money back do what?
They reinvest it back in the economy in new investments and new capital.
We’re putting some very enticing rules into the system that will entice people to invest capital for the next five years.
We’re giving people a five-year write-off that they can instantly expense. So look, if that happens, that’s fine.
We know that that money will get invested right back into the economy,
and drive jobs,
drive economic growth,
drive wages,
and drive prosperity. ( only for the Capitalists )
What Cohn is articulating is a version of the theory of trickle-down economics.
The Center for Economic and Policy Research’s Dean Baker is skeptical of Cohn’s explanation of corporate behavior during another tax holiday.
“Cohn’s story on repatriation goes the wrong way for a supply-side tax cut,” he told The Intercept.
“Insofar as the repatriation does lead to more money being paid out to shareholders as dividends or capital gains, and they spend a portion of this money,
it leads to the higher interest rate and less investment story.
Of course, if we feel the problem is the economy doesn’t have enough demand, this is fine, but
the easiest way to generate demand with a tax cut is to give the money to low- and middle-income people who will spend almost all of it.”
https://theintercept.com/2017/10/02/...omy-gary-cohn/
The tax cut LIES are spreading far and wide.