Republican Sen. Marco Rubio (Fla.), who voted for his party’s tax overhaul, said in an interview published Friday that the legislation “probably went too far” cutting corporate taxes and now expects corporations to pay out higher dividends to shareholders and buy back shares to increase their stock price with proceeds from the bill.
“You’re going to see a lot of these multinationals buy back shares to drive up the price,” Rubio told the News-Press.
“Some of them will be forced, because they’re sitting on historic levels of cash, to pay out dividends to shareholders,” Rubio said. “That isn’t going to create dramatic economic growth.”
The GOP tax bill dropped the corporate tax rate from 35 percent to 21 percent.
Republicans argued that cutting the corporate tax cut would result in higher wages and more jobs for U.S. workers.
Rubio said while the bill contained several provisions he supported, “If I were king for a day, this tax bill would have looked different.”
“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.
“By the time we get to November of next year, their opinion about the tax bill is not going to be based on media coverage. It’s going to be based on what their paycheck is telling them.”