Each and every GOP candidate — from Mitt Romney and Perry to Michele Bachmann and Herman Cain — has called for a reduction in the corporate tax rate. Romney’s economic plan, unveiled yesterday, calls for lowering the corporate tax rate from 35 percent to 25 percent (at a cost of $900 billion), while Bachmann has called for a cut down to 9 percent (which would cost more than $2 trillion).
The theory behind the GOP’s call for lower corporate taxes is that more cash will free up companies to begin hiring again. However, as we’ve pointed out time and again, corporations are already sitting on record high cash reserves. Corporate after tax profits are currently the highest they’ve ever been since such databegan being recorded in 1947. So it is certainly not a lack of funds that is holding companies back.
http://thinkprogress.org/economy/2011/09/07/313286/question-debate-gop-corporate-tax-profits
