Time: December 2017
Place: Washington, DC
Congress: We’re going to restructure the tax code and give you corporations an enormous $1.5 trillion tax break.
Corporations: Great. Thanks.
Congress: We believe this money will cause big corporations like you to increase your capital expenditures, which will stimulate the economy.
Corporations: Why would we do that? We’ll use the money for stock buybacks that drive up the price of our stock and we’ll pocket the rest of it.
Congress: Wait. What? Well, we’re going to do it anyway because our big donors want it and Trump wants it.
Reuters: $1.5 Trillion US Tax Cut has No Major Impact on Business CAPEX.
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