Larry Summers critiques that the Trump tax holiday for U.S. multinational corporations may cause inadvertent consequences.

Rose Prince

2017-01-17 12:42:00 Tue ET

Former Treasury Secretary and Harvard President Larry Summers critiques that the Trump administration's generous tax holiday for American multinational corporations may have inadvertent consequences.

This Bloomberg news article and video clip summarize Summers's critiques in several bullet points.

When these corporations repatriate offshore cash, this cash is unlikely to be spent on domestic job creation and R&D innovation.

This cash might go into greater empire-driven M&A expansion, opportunistic low-cost share buyback, and financial reorganization.

This managerial hubris can translate into bigger bonuses and cash windfalls for many senior executive managers to the detriment of minority shareholders.

This managerial rent protection not only entrenches key corporate blockholders but also exacerbates income and wealth inequality in Corporate America.

The supply-side tax cuts and infrastructure expenditures move beyond voodoo economics with extraordinary uncertainty.

Can Trump's economic policy reforms prove their worth in due course?


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Federal Reserve institutes the third interest rate cut with a rare pause signal.

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Nobel Laureate Paul Milgrom explains the U.S. incentive auction of wireless spectrum allocation from TV broadcasters to telecoms.

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In accordance with the extant corporate disclosure rules and requirements, all U.S. public corporations have to report their balance sheets, income statemen

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Daron Acemoglu and James Robinson show that good inclusive institutions contribute to better long-run economic growth.

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Daron Acemoglu and James Robinson show that good inclusive institutions contribute to better long-run economic growth.

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