1. Only if there is demand
2. Only if they were previously cash constrained, and could not make the investment
Only if the two conditions are true will the tax cuts make a difference in capital investment.
When corporations were already sitting on historical levels of cash, it's hard to make that conclusion. Hence why the vast majority of economists see minimal growth.
More valuable was the changes to the amortization schedule for capital investments, but you didn't need $2T in additional debt to do it.
Companies are spending more of their tax cut on stock buy backs than they are one time small bonuses given to employees based on years of service. It's a fucking joke.
Here are some random thoughts. I'm thinking out loud here and I'm (very obviously) not an economic expert:
OK so the point of these posts is that companies will just hoard the cash. Unless the argument is that they will put the physical dollar bills into a vault, doesn't that money get invested into something that is productive to the economy?
If the money is deposited into a bank, that bank will lend it out. To businesses, for personal loans, for whatever. It gets spent, and at a multiple of the actual deposits (due to fractional reserve).
If the money is used for stock buybacks, then the money is distributed to people who own that stock and at a price they are willing to sell it for. That money either gets spent or gets invested. Stock buy backs are often initiated with the purpose of awarding stock to employees. Who then sell the stock to buy stuff or invest in stuff.
If the money is used to purchase other types of assets (gold, oil futures, real estate, whatever), it increases competition/demand for those items, and drives up the price for those who are selling them.
All of these things lead to more money changing hands. When more money changes hands, doesn't that necessitate more jerbs? Doesn't the government get to tax these transactions? Isn't that good? Isn't that the same purpose as government economic stimulus plans?
I know I'm kind of all over the place. I'm not looking for an argument, I just want insight into questions that have been nagging me in the back of my mind when reading posts like the ones I quoted.