How Repealing the Corporate Tax Work

Companies invest the money out of NOPAT(net operating protit after tax). The corporate tax rate is high(35%). If the corporate tax is repealed, NOPAT is equal to NOPBT(net operating profit before tax).

Suppose company A has $10 bn NOPBT. Its NOPAT is $6.5 bn when the corporate tax rate is 35%. If it is repealed, NOPAT will raise $10 bn; NOPAT=NOPBT. Remember companies invest their money from their FCF(free cash flow). FCF is nearly equal to NOPAT. So the company, and the entire American economy, has 54% much money to invest. (10/6.5=154%)

Economics tells us "the government is less effective than the market." So the company, the case above, using additional $3.5 bn FCF is more effective than the goverment taking it as tax and spending to something, whatever.