VooDoo Economics

While Wall Street keeps rolling (and doesn’t have to ever worry about being prosecuted), but the rest of America is waiting for the trickle-down.  During the 2012 presidential election, corporations were called “people” and “job creators,” and that we have to keep cutting their taxes, for the good of the outfit.

And it’s just not Republicans calling for lowering the corporate tax rates, your “liberal,” “communist,” “community organizing” President is also advocating for lowering the corporate tax rate.

Why?  Because the donor class expects it, and what the donor class expects, it gets.

For example, while corporate donors cry and complain about a suffocating U.S. tax system, they’re certainly using that system to achieve even lower taxes:

ge-logoEighty-three companies have stockpiled $1.43 trillion in untaxed profits in foreign countries, according to data compiled by Bloomberg. The leader is General Electric Co., which said in a Feb. 26 filing it has $108 billion sitting overseas.

 

Among drugmakers, Pfizer reported having $73 billion abroad, Abbott Laboratories (ABT) $40 billion and Bristol-Myers Squibb Co. and Eli Lilly Co. $21 billion each.

 

Merck’s shares climbed 1.6 percent to $43.66 at the close in New York. Pfizer rose less than 1 percent to $28.25. J&J gained less than 1 percent to $78.44.

 

Republicans such as (Iowa Republican Senator Charles) Grassley and Michigan’s Dave Camp, the chairman of the House Ways and Means Committee, want to encourage companies to repatriate their stockpiles in the hope that bringing the money home will lead to investment and job creation. A proposal by Camp would exempt earnings from U.S. taxes and limit the ability of companies to shift their profits into low- or no-tax countries.

Unemployment remains high, wages have barely increased during the last 30 years (despite higher productivity), and remember that we’re the ones being told to sacrifice.

Let’s not forget that corporate tax rates are at their lowest rates in 40 years.

Does Congressman Camp truly believe we’re gullible enough to believe that if we just keep giving corporations more giveaways, they’ll just have to invest more in this country?

Right. And I’m Donald Duck.

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