Idle corporate cash piles up

[lordsummerisle]

Idle corporate cash piles up
David Cay Johnston
Jul 16, 2012 10:45 EDT

IRS data suggests that, globally, U.S. nonfinancial companies hold at least three times more cash and other liquid assets than the Federal Reserve reports, idle money that could be creating jobs, funding dividends or even paying a stiff federal penalty tax for hoarding corporate cash.

The Fed’s latest Flow of Funds report showed that U.S. nonfinancial companies held $1.7 trillion in liquid assets at the end of March. But newly released IRS figures show that in 2009 these companies held $4.8 trillion in liquid assets, which equals $5.1 trillion in today’s dollars, triple the Fed figure.

http://blogs.reuters.com/david-cay-johnston/

[sad sally]

1. Well, here in the US, if "they" would just lower the tax rates, maybe take corporate tax rates

down to zero, and throw in a couple of cases of Screaming Eagle Cab 1994 ($80 g's a bottle), oh and eliminate that totally unfair estate tax, maybe then...just maybe those companies would turn loose of some of their trillions and invest in America. silly me...

[SDjack]

2. How much more do they need before they will "create" some jobs? nt

[reformist2]

3. This is why an annual wealth tax is needed - all the money is pooling up in a few places.

An annual wealth tax would get the water flowing again, sort of like a fountain.

But to get the economy moving again, direct stimulus - literally handing people that money, or at least checks to reduce their debts - is going to be needed.