Let's say that I own a 5 million dollar business that makes 1 million per year in profit, and the corporate tax rate is 40%. I could take my profit and pay my taxes, leaving me with a 5 million dollar company and $600k cash. Alternatively I could "spend" that $600k to get 1 million dollars in cash interest free to invest in my company, raising its valuation to 6 million. Assuming with the investment that that the company continues to generate 20% profit, even if the tax rate stays the same, I make $720k per year after taxes. Considering I invested 1 million and I'm making an extra $120k per year, that's a 12% ROI/yr - not bad, not great. But since it only cost me $600k to make that investment, I'm really getting 20% ROI/yr. If taxes drop in the future, the ROI further increases, but they don't need to for it to be advantageous. Even if I never actually take profits, my net worth is still going up, and I can cash that in by selling the business or some of its assets at some future point.