business news in context, analysis with attitude

Content Guy’s Note: Stories in this section are, in my estimation, important and relevant to business. However, they are relegated to this slot because some MNB readers have made clear that they prefer a politics-free MNB; I can't do that because sometimes the news calls out for coverage and commentary, but at least I can make it easy for folks to skip it if they so desire.

CNBC has a story about how Sen. Marco Rubio (R-Florida), is saying that there is “no evidence” that the recently passed federal tax cut is really helping US workers.

“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," Rubio told the Economist. “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.”

Rubio, the story points out, voted for the tax cut, which was promoted as being something that would lead to larger corporate profits, which then would result in higher pay for American workers.

"Senator Rubio pushed for a better balance in the tax law between tax cuts for big businesses and families, as he's done for years,” his office said in a follow-up comment to CNBC. “As he said when the tax law passed, cutting the corporate tax rate will make America a more competitive place to do business, but he tried to balance that with an even larger child tax credit for working Americans.”
KC's View:
I bring this up only because it reflects a theme that I’ve tried to return to frequently here on MNB. I’m in favor of tax policy that enables companies to be more profitable, but my concerns about this from the beginning has been that the rewards would be enjoyed by top execs and shareholders, and not so much by front line personnel who make companies, especially retailers, successful.

By the way, we took note here the other day of a story about a company where this does not seem to be the case - Kroger says it is investing in wages, benefits and employee education, not just in its shareholder rewards. I think that’s admirable.