Reply #95: We need to tap the huge corporate profits, not cut taxes on them

[OlympicBrian]

Corporations have huge profit margins because they have moved operations to low-wage places like Brazil and China and India. Their profits and cash on hand are strongly on the upswing. They have been selling bonds like crazy (borrowing money). So no, they aren't hurting.

Corporations especially need to be taxed in high-growth, offshore locations--where revenues are the richest. Doing so would also encourage them to think twice about offshoring.

US tax revenues from individual income tax receipts are projected to be about 6.0 times those of corporate receipts for 2010. But corporations used to pay a much higher share of taxes--individual receipts were only 2.4 times those of corporate receipts in 1969.

That means corporations share of federal tax receipts went down by 250 percent between 1969 and 2010!

It seems the media has us fooled into thinking corporations need tax breaks. Another example of what makes the Fiscal Commission plan such trash--the proposal is to not only cut corporate taxes, but to "stop taxing overseas profits of US multinationals." (How does adding zero revenue help the deficit?)

The craziest part of all, is these huge windfalls for the ultra-rich and corporations are presented to the American public as a plan to reduce the deficit.