Despite voting for President Donald Trump’s tax cut package last year, which Democrats and others ridiculed as a gift to corporations and the wealthy, Senator Marco Rubio (R-FL) is now blasting the legislation.
“When corporation uses profits for stock buy back it’s deciding that returning capital to shareholders is better for business than investing in their products or workers,” Rubio said in a tweet Thursday. “Tax code encourages this. No surprise we have work life that is unstable & low paying.”
The comment by Florida’s Rubio, who voted for the tax law, echoes the message Democrats have used to criticize his party’s signature legislative achievement under President Donald Trump. They’ve said the law, which slashes the corporate rate to 21 percent from 35 percent, is a handout to corporations, which are using their savings to just repurchase more stock.
Stock buybacks jumped nearly 50 percent in the first half of 2018, Business Insider noted, to a total of $384 billion in just six months.
Rubio, who ran unsuccessfully for president in 2016, has previously criticized his party for directing too much of the 2017 tax cut to corporations and not enough to families. In the final days of debate in the Senate, Rubio, along with Mike Lee of Utah, pushed to increase the corporate tax rate to pay for a more generous child tax cut. After lawmakers agreed to increase the refundable portion of the credit, Rubio supported the law.