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Tax Cuts and Job Creation

Started by manasia, August 07, 2011, 06:06:50 PM

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manasia

August 07, 2011, 06:06:50 PM
Can any post any real data, that shows that Tax Cuts really create jobs:

http://blogs.forbes.com/petercohan/2011/05/03/do-tax-cuts-create-jobs/

The Above Link says that tax cuts do not, if someone could post some data that shows an increase in job growth, I will be happy to read it.
The race is not always to the swift,
Nor the battle to the strong,
Nor satisfaction to the wise,
Nor riches to the smart,
Nor grace to the learned.
Sooner or later bad luck hits us all.

manasia

#1
August 07, 2011, 06:07:59 PM
According to the Heritage Foundation we are 9th in world for Economic Freedom:

http://www.heritage.org/Index/

The race is not always to the swift,
Nor the battle to the strong,
Nor satisfaction to the wise,
Nor riches to the smart,
Nor grace to the learned.
Sooner or later bad luck hits us all.

Lunican

#2
August 07, 2011, 06:24:36 PM
There is no data because it doesn't happen.

High taxes provide a strong incentive for businesses to invest in themselves as a tax shelter.

Low taxes provide a strong incentive to slash costs and take the profit.

danem

#3
August 07, 2011, 07:35:06 PM
Do lower taxes increase consumer demand? If it did that, it would create jobs indirectly. Maybe that's a concept worth looking at.

Lowering unemployment would be done ultimately making more of a demand for the services of workers. Businesses with extra money lying around wouldn't necessarily just hire more people unless there was a need and reason for those people to be there.

manasia

#4
August 08, 2011, 10:30:58 AM
Thank you all for the replies. As I figured, my Trickle Down Folks could not come up with any data to support their claims.
The race is not always to the swift,
Nor the battle to the strong,
Nor satisfaction to the wise,
Nor riches to the smart,
Nor grace to the learned.
Sooner or later bad luck hits us all.

JeffreyS

#5
August 08, 2011, 10:46:20 AM
Einstein nailed it when he describe reality as being relative. If taxes are too high cutting them can have benefits. The benefits however tend to go to wherever they will get the relatively highest ROI. The problem with being a rich country and trying trickle down (VooDoo) economics.

So after 30years of tax cuts we get no bang for the buck anymore.  If we do try tax cuts the Regan/Clinton free trade  instead of fair trade agreements screw us out of any benefits cuts may contain anyway.
Lenny Smash

manasia

#6
August 08, 2011, 10:53:16 AM
Quote from: JeffreyS on August 08, 2011, 10:46:20 AM
Einstein nailed it when he describe reality as being relative. If taxes are too high cutting them can have benefits. The benefits however tend to go to wherever they will get the relatively highest ROI. The problem with being a rich country and trying trickle down (VooDoo) economics.

So after 30years of tax cuts we get no bang for the buck anymore.  If we do try tax cuts the Regan/Clinton free trade  instead of fair trade agreements screw us out of any benefits cuts may contain anyway.

Good points Jeff.

Bushes Daddy introduced us to that Voodoo Economics Term.
The race is not always to the swift,
Nor the battle to the strong,
Nor satisfaction to the wise,
Nor riches to the smart,
Nor grace to the learned.
Sooner or later bad luck hits us all.

buckethead

#7
August 08, 2011, 03:56:57 PM Last Edit: August 10, 2011, 12:32:01 PM by buckethead
Economics is opinion.

It's akin to trying to rationalize chaos.

Tax cuts do not create jobs. Kind of a no brainer.

Demand for goods and services causes an increase in jobs. (That increase is not a constant.)

Tax cuts can (but do not necessarily) attribute to an increase in demand for goods and services. That is, provided that the money that remains in the private sector is actually spent (domestically). If that wealth is stored... as in commodities such as Gold, (or in the case of institutional banking, ca$h {a poor means of storing wealth, BTW}) well then, not so much in the way of increased demand for goods and services.

It's a large part of what is going on today.

To say that tax cuts = jobs is wrong.

To say that tax cuts cannot influence the creation of jobs is wrong.

It's a bigger issue than tax cuts vs no tax cuts.

FayeforCure

#8
August 10, 2011, 12:20:34 PM Last Edit: August 10, 2011, 12:22:21 PM by FayeforCure
Quote from: manasia on August 07, 2011, 06:06:50 PM
Can any post any real data, that shows that Tax Cuts really create jobs:

http://blogs.forbes.com/petercohan/2011/05/03/do-tax-cuts-create-jobs/

The Above Link says that tax cuts do not, if someone could post some data that shows an increase in job growth, I will be happy to read it.

Thanks for posting!

Supply-side economics doesn't work.......we've tried it for 30 years already. It's demand side economics (demand for goods and services that drives the economy), that also implies that tax-cuts for the middle class have a higher job creation effect than tax cuts for the ultra-wealthy.

Next time the wacko tax cut mythology comes up in conversation with the rigid right wing, just point to this chart to put the charade to rest:



Clearly, we HURT our economy with the tax cuts..........they do NOTHING TO IMPROVE GDP. in fact they make our GDP deteriorate..........more so in the case of tax cuts for the ultra-wealthy vs tax cuts for the middle class.

And the explanation is simple:

1. Give an unemployed person unemployment benefits and the entire amount (100%) goes right back into our economy through increased demand for goods and services.

2. give a middle class person a tax cut, and a portion goes to increased spending, but some of it gets squirelled away. (less than 100% goes back in the economy through increased demand for goods and services)

3. give the ultra-wealthy person a tax cut, and they are not spending any more money, since they were already able to buy whatever they wanted ( no ie 0% increased demand for goods and services)

Jobs are only created when there is an increased demand for goods and services, plain and simple.

It's not like: " Look, I've got some extra money this month, lets create a job with that" It doesn't work that way.

NO Demand= No Jobs created
In a society governed passively by free markets and free elections, organized greed always defeats disorganized democracy.
Basic American bi-partisan tradition: Dwight Eisenhower and Harry Truman were honorary chairmen of Planned Parenthood

BridgeTroll

#9
August 10, 2011, 12:29:12 PM
By all means... PLEASE raise taxes already.  Campaign on it... and run with it... and do it already. :)
In a boat at sea one of the men began to bore a hole in the bottom of the boat. On being remonstrating with, he answered, "I am only boring under my own seat." "Yes," said his companions, "but when the sea rushes in we shall all be drowned with you."

FayeforCure

#10
August 10, 2011, 12:34:27 PM Last Edit: August 10, 2011, 12:37:17 PM by FayeforCure
Quote from: BridgeTroll on August 10, 2011, 12:29:12 PM
By all means... PLEASE raise taxes already.  Campaign on it... and run with it... and do it already. :)

The time to do it was when we started those 2 wars: Never in the history of the US have we waged war on a credit card!!

A war tax is what is needed. You want war? You pay for it, plain and simple!!

Also, if we didn't have a system where the ultra-wealthy BUY elections, we could easily return back to the Clinton era taxes!
In a society governed passively by free markets and free elections, organized greed always defeats disorganized democracy.
Basic American bi-partisan tradition: Dwight Eisenhower and Harry Truman were honorary chairmen of Planned Parenthood

buckethead

#11
August 10, 2011, 12:36:55 PM
More common ground with Faye!

(Although I would still be opposed to the wars on moral grounds... attacking a sovereign nation which did not attack us)

BridgeTroll

#12
August 10, 2011, 12:41:35 PM
QuoteAlso, if we didn't have a system where the ultra-wealthy BUY elections, we could easily return back to the Clinton era taxes!

Does that include our current President?
In a boat at sea one of the men began to bore a hole in the bottom of the boat. On being remonstrating with, he answered, "I am only boring under my own seat." "Yes," said his companions, "but when the sea rushes in we shall all be drowned with you."

BridgeTroll

#13
August 10, 2011, 12:52:29 PM
Why oh why... when dems owned the House... the Senate and the Executive... they not only did not raise taxes... they extended W's tax rate?

I said it before and I will say it again.  I really dont think Dems WANT to raise taxes.  They want to talk about raising taxes... They want to use taxes as a talking point...
In a boat at sea one of the men began to bore a hole in the bottom of the boat. On being remonstrating with, he answered, "I am only boring under my own seat." "Yes," said his companions, "but when the sea rushes in we shall all be drowned with you."

BridgeTroll

#14
August 10, 2011, 01:32:42 PM
I love how your arguments always leave off the culpability of the democrats.  Because THAT is truly the issue with ALL of this.  Both sides are intertwined in this... While you take great delight in simply pointing to republican culpability... I... in the spirit of bi partisanship blame them both. :)
In a boat at sea one of the men began to bore a hole in the bottom of the boat. On being remonstrating with, he answered, "I am only boring under my own seat." "Yes," said his companions, "but when the sea rushes in we shall all be drowned with you."
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