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First of all, this is the largest corporate tax cut in over a century. So any comparisons with other corporate tax cuts is invalid. But let's look at what happens when corporations pay less taxes and what they can do with the new-found cash.

They could hire more workers. Winners: Workers.

Or, they could give bonuses to existing workers. We have already seen this in spades, as numerous Fortune 500 companies have already done. Winners: Workers.

Or, they could increase their dividends. Winners: Those who own the stock of the companies in question, either through direct ownership of the stock or through ownership of mutual funds or ETF's that hold the stock in nonqualified accounts or through retirement plans.

Or, those corporations could use the new cash to buy back their own stock. Winners: The same as those who benefit from an increase in dividends.

Or, they could expand existing facilities. Winners: The newly employed who will staff those facilities, and those workers benefitting from the expanded construction.

Or, they could build new facilities. Winners: Again, the newly employed and construction workers.

Or, they could repatriate profits currently held overseas and pay the new, lower rate here in the US. Winners: The US Treasury.

What this article predictably fails to point out is that shareholders demand that corporations NOT sit on cash. Bottom line: I fail to see how a reduction in corporate tax rates is a negative...to anyone! The average citizen does not have a 'right' to corporate profits, redistributionist alarmists not withstanding.

From: It takes two for tax breaks to work

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