Republicans argue that corporations need tax cuts so they can raise wages and grow their businesses. Poor, struggling businesses! Except that, no, these companies already have so much cash they don’t know what to do with it. They don’t need the money.

My first question is one I ask a lot: how goddamn stupid do they think we are? Corporations will take their tax cuts and — voluntarily — raise wages? That’s been true since… well, never, of course. It’s horseshit, but worse, it’s obvious, blatant horseshit. They don’t care that we know they’re lying.

Now, the economy is already at close to full employment. If many more people suddenly find jobs, that would drive up wages, and inflation. In that case, the Fed would raise interest rates to slow things down. It’s what they’re required to do.

The argument that companies will use that money to expand their business almost makes sense, unless you actually follow financial news. Most companies have had excess cash lying around ever since the 2007 recession eased. How else to explain stock buy-backs and soaring executive pay? Plus, has anyone seen many markets where lots of consumers just cannot get the stuff or services they want? (Outside of Tesla, I mean?) Yeah, me neither. No, there’s no evidence that consumer demand isn’t already being met. So why would rational companies expand production to make stuff people don’t want or need?

Profitability? Please! Companies — especially big, established firms — have higher profits than ever. Look at the stock market boom. Profitability is not crippling American industry.

 

So if companies don’t need the money, what will they do with all that cash Republicans are about to pour over them? If you ask CEOs, their answers are to give it away as higher dividends, and to reduce corporate debt (stock buy-backs to raise share prices, and reducing debt, to… well, raise stock prices). While the CEOs didn’t mention executive pay, I’m pretty sure that’ll be slipped in there, too.

So, dividends, higher stock prices, and higher dividends. Every answer is that CEOs will simply pass the corporate tax cuts on to rich people.

Don’t pretend you’re surprised.