Shark Tank host Mark Cuban has opinions regarding the Trump administration’s tax reform.
During a conference last Wednesday, Cuban said the proposed tax reform for businesses would not affect the chain of economics in the U.S., Reuters reports.
The bill supported by Republicans proposes to cut corporate taxes from the current 35 percent to 20 percent. President Donald Trump encourages legislators to pass this bill because he said the reduction of corporate tax would boost the economy, like a domino effect. Trump said the extra 15 percent that would go back to corporations would be a force for reinvestment and hiring locally.
However, Cuban disagrees. He said that the tax rate has no impact on corporate decision making. Speaking of his own tech and entertainment companies, Cuban said there will be no such effect on his companies whether the tax cut would be implemented or not. For Cuban, the economy is run by competition and not by tax cuts.
“Competition drives what I do in my businesses a whole lot more than tax rates.”
He said big tech companies like Amazon, Microsoft, Facebook, and Google would make a bigger impact on the economy than the tax rate. For the business mogul, the Trump administration is overreaching when it defines the benefits of their proposed tax cut.
In another interview with Fox Business, Cuban shared the same sentiments. He said that the big propaganda of this proposed plan was to increase American wages. However, Cuban said the reduction in tax rates would not automatically impose a wage increase.
There are different factors at play when it comes to hiring and wages, and taxes have a minute effect on these.
Cuban said that he is already doing what every other business person in America is doing and that is to empower the economy, according to a report from Money Morning.
Additionally, he said that there could be an arrangement where the administration would ask for a commitment on businesses to increase wages, but that still depends on business owners.
Ultimately, Cuban doesn’t see how the White House would go about their tax reform and is not sure if this is really for the benefit of the public because if the reform is implemented and wages are not raised (as advertised by the party), people are going to be left wondering what happened and why.
[Featured Image by Michael Cohen/Getty Images for The New York Times]