Why can’t Republicans just be honest about their massive tax cuts? They want to give the bulk of their massive tax cuts to the richest Americans and profitable corporations while claiming their cuts benefit middle class Americans. They allege that their proposal to slash the corporate tax rate from 35% to 20%, an enormous 42% cut, will benefit the middle class. Various tax policy research groups have analyzed the Republicans’ claims and agree the biggest winners are the richest Americans and the most profitable companies, not the middle class. The nonpartisan Tax Policy Center reports that, “higher-income households would get the largest cuts — both in terms of dollar amounts and as a percentage of after-tax income.”
Republicans attempting to sell their massive corporate tax cut dishonestly claim these companies need this tax saving to create jobs. Here’s the catch with their ridiculous claim: American companies are sitting on unprecedented piles of cash or other liquid assets, yet they haven’t used that money to create jobs or hire more workers. According to Business Insider, hardly a flaming liberal publication, American companies are hoarding nearly 2 trillion dollars in cash.
“The top 24 of the largest American companies are holding on to a whopping $1.01 trillion in cash reserves, up 1.63% from the first quarter, according to analysis of second quarter earnings reports by Bank of America.”