Marco Rubio, who seems to change positions almost as often as Mitt Romney, has pretty much given up the game in an interview with The Economist. Talking about the effect of tax cuts, he admitted that tax cuts for the wealthy and corporations have helped the owners of corporations but not their workers:
Gee, if only someone had predicted that outcome. Like, oh I don’t know, pretty much every mainstream economist in the country, the Democratic party, bloggers like me. We all said before the tax cut bill was passed that it would explode the deficit, that it would be used primarily for stock buybacks that concentrate wealth in the hands of fewer people and drive up the value of the stock, and that it wouldn’t do much, if anything, for economic growth.
Most Republican congressmen meanwhile remain entranced by the limited-government shibboleths he has shaken off, as his fight over the tax bill revealed. Mr Rubio’s proposal, to double the tax credit to $2,000 per child and pay for it by making a small increase to the corporate rate his party wanted, was decried by some Republicans as socialism. The watered-down version they accepted, as the price of Mr Rubio’s support for the bill, excluded the poorest families. “There is still a lot of thinking on the right that if big corporations are happy, they’re going to take the money they’re saving and reinvest it in American workers,” he says. “In fact they bought back shares, a few gave out bonuses; there’s no evidence whatsoever that the money’s been massively poured back into the American worker.”
Meanwhile, we were told by Republicans that the tax cuts would be “rocket fuel” for the economy, that companies that benefited would start building new factories and hiring people to work in them, and raising the wages of workers by $4000 a year. None of that has happened. Corporate investments are pretty much the same as they were before the tax cuts were passed because the money went into buybacks instead. And the deficit has gone up by nearly a trillion dollars this year, which will continue over the next several years.
In short, every single thing the Republicans said would happen as a result of the tax cuts turned out to be wrong, and everything the critics of the tax cuts said would happen turned out to be true. Imagine that.