This is a very good use of 280 characters in Twitter:
1. Tax cut backers say corp rate cut will encourage investment by businesses
2. During interview with Gary Cohn, WSJ asks CEOs to raise hands if they’ll boost investment if rates cut
3. Few CEOS raise hands
4. Cohn asks: “Why aren’t the other hands up?” pic.twitter.com/aGn8gHPQTh
— Chris Manjaro (@ChrisManjaro1) November 14, 2017
The CEOs, of course, have no particular reason to lie about this. They’re already hoarding cash and could easily boost investment right now—but only if they thought it would earn them a good return. A lower tax rate won’t change that, so there’s no special reason to think they’ll invest more. The rate cut will mostly be used for stock buybacks, increased dividends, and higher salaries for executives.
Needless to say, Gary Cohn knows this perfectly well.