Potential presidential candidate and billionaire entrepreneur Mark Cuban has said that a cut in the corporate tax rate in the U.S. would have little or no effect on his decisions to invest.
Measures before both the U.S. House of Representatives and Senate would lower the corporate rate to 20% from 35%.
President Donald Trump along with other supporters of bills involving tax cuts say that reducing corporate along with other taxes would give a boost to the economy by making more capital available that could be invested in industries that create jobs.
However, Cuban did say that tax rates had zero impact on the decisions to invest in small business, like he does on the Shark Tank reality show and very little to no effect on decisions for his own entertainment and tech companies.
Cuban said competition was a driver in what he does in his businesses much more than tax rates.
Amazon will affect far more businesses as will Google, Facebook, Microsoft and other large companies, far more than a tax rate, Cuban indicated.
Economists with Cuban also disputed the supply-side or traditional conservative argument behind tax cuts.
Democrat Alan Blinder a former vice chair with the board of governors of the Federal Reserve said that data dating back decades failed to show any correlation between tax rates and growth that follows.
Another Democrat Mark Zandi who is a chief economist said that taxes matter and that tax policy that is well constructed could improve growth over the long-term, but not close to the assumptions that the White House administration has made.
Zandi added that the proposals from the House and Senate were bad tax policy.
A global economist from Zambia said demographic, technology shifts like immigration as well as debt have much more impact on growth than taxes.
Cuban said that the best cut in tax to spur on growth would be the reduction of employment tax like the payroll tax reduction of 2% that former U.S. President Barack Obama signed back in 2010.
Employment taxes must be paid by both workers, through withholding, and employers.
Cuban, who is 59, at one time supported Trump, but later endorsed Democratic presidential candidate Hillary Clinton told his interviewer since the early part of October he has considered his own run for the White House in 2020.