Do tax cuts help create Jobs?

Do you believe economic growth yields an increase in revenues?

Do you believe tax cuts yield economic growth?

Case closed........
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Well considering they pay a lion's share of the taxes.......

Right because rich people never buy anything......they live in holes and eat cans of tuna fish.

It was disposable income that made their businesses possible.......and their expansion.

Its all under their mattresses......probably not investing a dime.....

Its just la la land for so many people......

If taxes are less......that means employers are paying less for labor.......and would be less likely to ship jobs overseas.
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In the modern world and the situation the USA is in today, cutting taxes do not create jobs. Because of the corporations goals of being more efficient. Corporations not small bidness, will not hire more people, their goal is to utilize less humans with higher production. Perhaps back in the days of the post industrial revolution tax cuts may have worked like up to the 1980s. But this is a different time and it is a global competitive market.

For the past 3 decades America has not created jobs. USA has only created opportunity. This opportunity comes with innovation in high tech, but with job losses in manufacturing and production. Other service opportunities such as the medical industry has allowed many professionals and corporations in insurance, pharmasutical, and medical equipment to take a pinch of money from one service or treatment, where as in the past the service was between the service privider and the patient. Same can be said for other industries like the construction and education industries. Such that there are more people taking a pinch of money from each transaction or service than ever before in this nation's history. In the past one transaction or service was limited to the service provider, and the consumer, and what ever other service or product was needed. Today there are many people involved in that transaction. So much so that the profit margin has been reduced significantly and the overhead cost is greater than ever before.

That is why jobs will not be created in the USA. We have saturated all industries with too many middle men/women.

In addition, the large unempolyment numbers you see are because the State and Federal governments, to include public safety and other government funded service programs in the USA have been cutting massess to balance their budgets.

As I have mentiond in the 2nd paragraph, when you make cuts in any industry it will have a larger impact on less jobs=higher unemployment because so many people were involved in that one particular service/product.

If you have a difficult time understanding this. Just try to write down how many people take a pinch and are dependent on the closing of one construction company or one hospital treatment program.

This is not like the 70s or 80s where if one company goes under another will sprout. This is a global environment, and your State does not have money to spend.

 

Large corporations do depend on a work force it's just not in a factory assembly-line setting. In fact, more and more the 'workplace' is in cyber-space. I worked for a large corporation (was an employee) for 3 years right from my own home-office.

3 decades is not an adequate statistical platform from which to draw such conclusions about global economic trends. Many of those other 'many people' have been mandated by useless government mandates and intrusion where they really don't belong. Example: 50 years ago a contractor did not have to pay for an 'environmental impact study' before building.

Government intrusion creates this type of thing because it knows nothing about efficiency...In fact any efficient government entity will cease to exist because they would have no need. In government, the more needy, the more $$$$.

They always cut needed services first, that is called blackmail and folks are getting (*)(*)(*)(*) tired of it. The more miserable you become, the more $$$ they can fleece from you. An excellent reason to kick government out of the economy.

The only reason an industry makes 'cuts' is because they are failing to make an adequate profit. This can be caused by many factors, most prevalent is government meddling/control.

Not sure what you mean by 'take a pinch'

The 'globe' uses US treasuries as their monetary standard and has been doing so for many decades. America is the global market. That is why this 'debt ceiling' controversy is worrisome to them. With the advent of the Internet, many businesses are global now. I see no threat there it's just a different market.

 

Right because Employers with MORE MONEY and Consumers with MORE MONEY and Producers with MORE MONEY only helped create jobs during the days of the caveman (liberalis democratis).

Yes of course.....those (*)(*)(*)(*) corporations and their efficiency.
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What does that have to do with the discussion on taxes and job creation? If we were discussing the fairness of taxation this would have been a good (albeit not necessarily completely valid) point. In the context of this debate the point is totally irrelevant though.

Rich people buy a lot of things but as tax cuts are not part of their disposable income their buying patterns are not changing (or barely changing) due to tax rate changes. They therefore don't create additional demand and don't stimulate the economy. Tax cuts by and large don't stimulate the growth of their businesses either as it's driven by additional demand, not additional cash on hand. And your sarcasm regarding the money under their mattresses notwithstanding, the correct financial term is "money on the sidelines" and it does happen a lot.

That would be a valid argument if the cost of labor was comparable. In the real world no amount of taxes will make up the difference between a $5 day chinese worker and $30 hour american one, between $15,000 a year Indian engineer and $70,000-$130,000 american counterpart.

PS and as I said in my previous post the government could have spent all this lost revenue in the US, building roads, hiring contractors, initiating science projects, investing in infrastructure and health care. That would have guaranteed that the money is spent in the country, created a ton of jobs and stimulated the economy.

 

Wow... rational thought... what gives you the right to be spouting common sense like this? .. it doesnt make me feel warm and comfy in my partisan hack party mob mentality world.

I demand you stop this rabble rousing and instead fill my ears with the sweet music of one answer, two or three word sound bites that ring well with the mindless mob that I have chosen to follow instead of thinking for myself. Tax cuts! Drill Baby Drill! etc....

 

If you can force the traitor who should be shot by firing squad to invest in American jobs instead of investing overseas or sitting on it to manipulate the election because he does not like an "N" in the White House.

If the cuts in taxes do not come with the added expenses of millions of mad as hell people who were forced by law to pay and now are told their insurance is worthless while the teenage demon spawn silver spoon inheritor of the guy that made millions of dollars a year is driving a sports car and not having to give it up due to a windfall because it is illegal to renegotiate all those old employment contracts for equitable private insurance and pensions...

Lets make everyone pay the same tax. This is what government is for, protect the stinking ass (which is covered by having served in the military) and property from those wont to rape, pillage, and plunder it.

Lets tax everyone with a flat net worth tax, and that be the only tax. You got $250,000,000 in net worth and if you pay .75% of that in taxes, the guy who has a $80,000 net worth pays the same percentage. Everyone is then happy?

Who gets the tax break there?

 

Lol, what specifically did democrats do to cause unemployment to freefall?

 

Once again, reality disagrees with you

 

Again, reality disagrees. Taxes are the lowest they've been in 60 years. Yet unemployment is over 9%

 

Not always. If said consumer already had plenty of capital demand doesn't really change.

 

There was no "Sometimes" answer in your poll. Sometimes tax cuts are appropriate to spur job growth.

That sometimes is a rare condition where demand is up but businesses are unable to get capital to expand their business. And in this case it is more effective to lower interest rates than it is to lower taxes.

And the funny thing about all your charts is directly after the cut off point of your charts we went into a deep recession. If tax cuts mean 5 years of medeocre growth followed by a deep recession then count me out.

 

Its also the lynchpin for fascism... dont fall for it.

 

When balancing a household budget...yes.
The USA is NOT a simple household.

Go LEARN about macroeconomics and then we'll talk...

 

.... word....

 

Again this only works if the people you are giving tax cuts too are in need of extra capital. Otherwise it gets put into a savings account. Where it flows to other areas of the economy MUCH slower. There are better ways to spend that money than on a tax cut. Ways that would cause that money to flow to the pockets of business owners MUCH faster. Like giving that money to the poor in the form of food stamps. Food stamps is one of the best economic stimulus we have. And it's nice because it automatically kicks in every recession.

 

There would be a small but positive hit.
A bigger hit would be to spend money on infrastructure.
That way...allot of unemployed become employed, they pay taxes, have income thus are spending, and with the added spending comes increased demand, thus more private sector jobs.

THIS method has been tried and it worked...unlike that "Trickle-Down" BS...

 

Exactly. It's not that tax cuts don't provide any stimulus. It's that for the cost there are much faster and more stable ways to stimulate. Especially when taxes are already as low as they are. The only reason tax cuts are so popular is for selfish reasons. It puts more money in your pocket. So people vote for it. But as far as economic stimulus goes it's probably the weakest method of stimulus. The Bush tax cuts for example cost more than they put into the economy.

 

Isn't this like the 3rd or 4th recent thread with these same charts?

Unemployment with Bush tax cuts:



Unemployment with Clinton tax increase:



Number employed with Bush tax cuts:



Number employed with Clinton tax increase:



To believe tax cuts spur job growth.........is to ignore common sense and every economic reality in world history.

 

Total revenue with Bush tax cuts:




Total revenue with Clinton tax increase:




Federal Deficit with Bush tax cuts:




Federal Deficit with Clinton tax increase:



Helpful charts for the numbers impaired.

 

It is your totally irrelevant point.....you brought it up.

Surprise.....Bill Gates pays a lot more taxes than you.....and therefore gets a bigger tax cut.

The answer was in the first sentence my beyond ignorant friend.......the MORE MONEY people have, the more they spend, regardless of economic class.

HAVE YOU EVER RAN A BUSINESS?

Then perhaps its time to let your mouth do some of the talking.......

Speaking on behalf of all business owners in this country......I tend to hire people and expand my business when I have MORE MONEY.....and when my customers have MORE MONEY.

YOu said "Tax Cuts are used to outsource existing jobs to the third world countries"....probably one of the (d)umbest statements I ever heard.......and testament to the fact you have never employed anyone.

Get this through your head........GOVERNMENT DOESNT HAVE MONEY.......GOVERNMENT HAS OUR MONEY...........

So make any justification you want.....just make sure at the end you add ".......and government funded this by STEALING FROM THE PRIVATE MARKET--FROM EMPLOYERS--FROM JOB CREATORS--AND FROM PRODUCERS.
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Right......Im destorying my business because there is black skin in the Whitehouse. Beyond brain dead.......

If you have a US Business that cant turn a profit.......YOU DONT HAVE A BUSINESS......YOU HAVE A CHARITY!

.....and a reason to leave the Divided Socialist States of ObamAmerica--The Most Business Unfriendly Country in the world.

The Democrat party would never agree to it.......punishing success and rewarding failure is what our liberal tax code is all about......
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Lets raise taxes to 90% on employers........that should work huh?
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Right.....its all under the mattresses.....and there isnt a consumer out there that doesnt need more capital.

Liberal economics is based in Imaginationland.......
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