White House budget director Mick Mulvaney downplayed fears that corporations won’t actually create more jobs after receiving tax reform benefits by saying it’s in their “best interest” to do so.
Mulvaney said on CBS’ “Face The Nation” he’s not worried major companies won’t create jobs with the money they keep from the tax reform proposal going through Congress.
The show’s host, John Dickerson, relayed a report that CEOs at a Wall Street Journal event did not raise their hands when they were asked if they planned to create new jobs with the money their companies will receive through tax breaks. Mulvaney said that poll was more due to the venue than the actual beliefs of the CEOs.
“My guess is, if I’m a Fortune 500 CEO I’m not going to tell my competitors who are sitting next to me what I’m going to do next year. They are going to do what is in their best interest and what we think is in their best interest is to invest here,” he said.
“Because not only would tax rates be lower but they’re going to expense all of their capital expenses, so every new machine that they buy, every new factory that they build, they will write off immediately against their tax. That is a tremendous incentive not only for folks not to leave the country in the first place, but for folks who have left to come back and that’s what we think is so important in re-establishing the connection between corporate success and the success of the ordinary family.”
The White House and many Republicans in Congress argue lowering corporate tax rates would allow corporations to create more jobs for middle class Americans and entice businesses that have moved production abroad to come back to the U.S.
