Capitalism is on trial and passing the test: Varney
The tax deal gave business just about everything it wanted. So is business using the extra money responsibly? Capitalism is on trial: Does capitalism work for everyone?
Yes! And the news from Apple is a fine example of doing the right thing—$2,500 bonuses; $350 billion to be invested in America over five years; $10 billion invested here for new data centers; $38 billion for the treasury. All of this, and more to come, because Trump and the Republicans cut taxes.
Forgive me, but I have to bring up Rep. Nancy Pelosi's statements about the tax cuts. First, she said it was "Armageddon.” That more than 80 million middle class Americans face a tax increase. I'll let that stand. No comment required.
But when she said business is only passing along "pathetic crumbs,” comment is required. Nancy Pelosi represents many Apple employees—$2,500 bonuses, $350 billion invested in America, 20,000 new jobs: "crumbs?” That’s pathetic.
And let’s put the burden on Ms. Pelosi: she and her husband own two vineyards. It’s not clear if they get the special deal for wineries that is in the tax plan, but they will get a much lower profit tax. Will they pass along some "crumbs" to their workers? Let’s see.
Meanwhile, we're waiting for all the other shoes to fall. There's $2.8 trillion in corporate profits parked overseas—a big chunk will come back.
In short, capitalism is passing the test. Corporate America got a big break, and corporate America is passing it along to employees, shareholders and customers. It’s not crumbs. It’s a win for America.