News & Politics

Robert Reich Runs Circles Around Trump's Former Economic Adviser Stephen Moore

The former secretary of labor dismantles the myth that tax cuts boost the economy.

Photo Credit: CNN

A CNN discussion on the Republican plan to decrease taxes on corporations did not go well for conservative contributor and former Trump economic adviser Stephen Moore when former U.S. labor secretary Robert Reich called his bluff.

“We did this in 2004; Steve Moore is acting like we didn’t have an experiment to test this theory. Under the George W. Bush administration, we did have a repatriation, a tax holiday and what did corporations do with all that extra money? Did they invest it? Create more jobs? No!” Reich explained. “They just brought back their shares of stock, pumped up share prices, provided more executive pay to the top executives—we’ve done it and we’ve seen that there are no results."

Moore was undeterred by the facts and carried on with his dubious economic position.

“Explain to me why it’s good for America that we have a 40 percent tax rate way up here and the rest of the world is at 20 percent down here,” he responded with gesticulation outside the camera frame. "It just doesn't work for America."

Reich shut that argument down.

“Well, it does because the effective tax rate—that is, what corporations are actually paying—is just about the same as other foreign corporations are paying."

Watch the exchange below.

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Chris Sosa is the former Senior Editor of AlterNet. His work also appears in Mic, Salon, Care2, Huffington Post and other publications. Follow him on Twitter @ChrisSosa.