Capitalism is on trial and passing the test: Varney
FBN's Stuart Varney says businesses such as Apple are using extra tax deal money responsibly.
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.