[kale]

I'm not an economist, so this is layman speculation, but it seems that taxing corporate money would encourage the company to re-invest it more quickly. Some have said that reducing corporate taxes (and increasing taxes on money when it actually goes to people) would provide more money to create jobs/grow the business. Wouldn't there also be a reduced incentive re-invest the money?

[davidw]

Taxing it would mean they had less of it to spend. They might spend it depending on tax breaks, but that might skew incentives in terms of forcing companies to spend the money on something for themselves rather than see it disappear in taxes. That something might not be the best investment though.