Corporations Will No Longer Stand Still For Same Old 'Soak The Rich' Schemes

IBD reports:

Recent budget results tell a cautionary tale for a soak-the-rich tax policy.

Corporate tax revenues dropped precipitously in 2009. Simultaneously, the deficit shot upward. Even though economic conditions devastated earnings, the deficit tempts policymakers to further worsen them by raising taxes. Global competition advises otherwise.

Overall federal revenues fell 16.6% in the 2009 fiscal year ended Oct. 1. Leading the decline was a 54.4% plunge in corporate income-tax receipts.

America already has a tax system highly dependent on top earners. The top fifth of tax filers pay almost 97% of the nation's income taxes, according to Congress' nonpartisan Joint Committee on Taxation.