Corporate America Is Awash With Cash
The next time you hear that there shouldn't be an increase in corporate taxes to help reduce the deficit and fund needed improvements here at home, remember that Corporate America, which just got tort reform relief as well, is swimming in cash.
Oh sure, I can hear the arguments now:
-a tax increase on a corporation is nothing more than a tax increase on consumers (so what?);
-if you raise taxes on corporations, they'll just take jobs overseas (like they're not doing that already?);
-if you raise taxes on corporations, it will make American business less competitive (compared to what and whom?)
Please spare me. The economy as measured by GDP is doing fine, but three years into a recovery these cash-rich corporations are not producing jobs here at home and instead are hoarding cash and sending jobs overseas. And because of that, we're supposed to be leery of raising taxes on Corporate America.
I'd like to think that government can do a better job with the revenue from a small increase in corporate tax rates and the closing of corporate tax shelters, loopholes, and corporate welfare than the corporations will do with the money. And if this were a Democratic administration, this would be true. Then again, if this were a Democratic administration, we wouldn't be in this fiscal mess with all of these unmet needs now.