Next time you hear that corporations need a tax cut, know the claim is baloney. According to a new report from Moody’s Investors Service, big American corporations are sitting on the largest pile of cash in history – over $1.73 trillion. What are they doing with it? Not investing it in new plant and equipment, not using it for research and development of new products, not distributing it to shareholders, and not sharing it with employees. They’re just stockpiling it – mostly abroad, to avoid paying U.S. taxes on it.
No one benefits from this. Stockpiling cash isn’t even helping shareholders. Apple, for example, is sitting on more cash than any other company but Apple shareholders have lost $240 billion in paper profits since its stock peaked.
So instead of cutting taxes of big corporations, corporate taxes should be on cash they’re just stockpiling.