Writing at his eponymous website, billionaire Michael Bloomberg had some harsh words for the Republican tax bill Friday. The former New York City mayor rejected the basic idea behind the tax overhaul — namely, that corporations, which are sitting on a record $2.3 trillion in cash reserves, will invest their newly enhanced profits in ways that grow the economy and benefit workers:
“CEOs aren't waiting on a tax cut to ‘jump-start the economy’ -- a favorite phrase of politicians who have never run a company -- or to hand out raises. It's pure fantasy to think that the tax bill will lead to significantly higher wages and growth, as Republicans have promised. Had Congress actually listened to executives, or economists who study these issues carefully, it might have realized that.”
Worse, Bloomberg says, the tax bill does nothing about the many problems facing the United States:
“The largest economic challenges we face include a skills crisis that our public schools are not addressing, crumbling infrastructure that imperils our global competitiveness, wage stagnation coupled with growing wealth inequality, and rising deficits that will worsen as more baby boomers retire. The tax bill does nothing to address these challenges. In fact, it makes each of them worse.”
Bloomberg says he’s all for reducing the corporate tax rate and closing loopholes, but only as part of a bipartisan plan that is revenue neutral. The current bill fails in that regard, resulting in an “economically indefensible blunder that will harm our future.”
Read the full piece on Bloomberg.com.