Mark Cuban says tax rates have almost no impact on investment

by Dramelin 10:00 PM 0 comments

Bills before both the U.
Senate and the House of Representatives would cut the corporate rate from the current 35 percent to 20 percent.
President Donald Trump and other supporters of the tax cut bills say reducing corporate and other taxes would boost the U.
economy by freeing up capital that would be invested in job-creating industries.
But Cuban said the tax rate had zero impact on decisions whether to invest in small businesses, as he does through the reality show "Shark Tank," and almost no effect on decisions for his own lineup of tech and entertainment companies.
"Competition drives what I do in my businesses a whole lot more than tax rates," Cuban told a Reuters Newsmaker forum entitled "The Trump Budget Debate" and moderated by Reuters Editor-at-Large Harry Evans.
"Amazon is going to affect a whole lot more companies and futures, as will Microsoft and Facebook and Google and other big companies, a lot more than a marginal tax rate," Cuban said.
Economists who joined Cuban on the panel also disputed the traditional conservative or supply side argument behind tax cuts.
Alan Blinder, a Democrat and former vice chair of the Federal Reserve`s board of governors, said data going back decades have failed to show a correlation between tax rates and subsequent growth.