Mark Cuban says tax rates have almost no impact on
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[November 16, 2017]
By Daniel Trotta
NEW YORK (Reuters) - Billionaire
entrepreneur and potential presidential candidate Mark Cuban said on
Wednesday that a cut in the U.S. corporate tax rate would have little to
no effect on his investment decisions.
Bills before both the U.S. 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.S. 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
"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 <AMZN.O> is going to affect a whole lot more companies and
futures, as will Microsoft <MSFT.O> and Facebook <FB.O> and Google <GOOGL.O>
and other big companies, a lot more than a marginal tax rate," Cuban
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.
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Businessman Mark Cuban participates in a Reuters Newsmaker panel on
'The Trump Budget Debate' in New York, U.S., November 15, 2017.
Mark Zandi, a Democrat and chief economist at Moody's Analytics, said
"taxes matter" and that well-constructed tax policy can improve
long-term growth but not nearly as much as the assumptions made by the
Trump administration. In any case, Zandi said, the House and Senate
proposals were "very bad tax policy."
Dambisa Moyo, a Zambian-born global economist, said technology,
demographic shifts such as immigration, and debt have far more impact
than do taxes on growth.
Cuban argued that the best tax cut to spur growth would be employment
tax reduction such as the 2-percentage-point payroll tax reduction that
former President Barack Obama signed in 2010.
Employment taxes are paid both by workers, via withholdings from their
wages, and by employers.
Cuban, 59, a onetime supporter of Trump who later endorsed Democrat
Hillary Clinton in the 2016 presidential campaign, has told interviewers
since early October that he is considering his own presidential run in
Asked about it by a member of the audience on Wednesday, he responded,
"I don't know yet.
"It's a serious decision and it's not one I have to make today," Cuban
(Reporting by Daniel Trotta; Editing by Leslie Adler)
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