Conservatives have reverted back to calling for corporate tax cuts to stimulate the economy and put people to work.
Consider this mindless reflex rather than policy. Corporations are sitting on $1.7 trillion in cash, yet not hiring people. A furious argument is waged about why they don’t hire. The Chamber of Commerce, reduced under head Tom Donahue to a right-wing propaganda arm, argues that the Obama administration has paralyzed companies with the threat of regulation. The Obama administration – and most sensate economists and financial advisors – put more emphasis on the absence of demand in an economy marked by mass unemployment and stagnant wages.
But one thing is clear. With corporations already awash in cash, tax cuts won’t get them to start hiring people. The Washington Post quotes Zachary Karabell, president of River Twice Research: “There’s not a whole lot that you could do to entice companies to hire. You could cut taxes on them, but they’re not going to hire just because they have the extra cash, because they already have the extra cash.”