Cutting Taxes = More Jobs

It doesn't. It's a tiresome excuse used by rich to justify turning in bigger profits. The money is hoarded for bonuses for those already working in upper management not more hiring and in a greedy world not for the good of the next generation, but rather the "take what you can from this life" mentality. Business' are searching for ways to eliminate the need for employment altogether, which is impossible. Makes for a lot of fancy technological innovative substitutes. That's about the only use for it, but then the question becomes why does it need to be this way? It's speeding up the pace of life beyond the comfort of living. The U.S. is a rule by corporate state with GOP Republican party sucking from it's tit. The welfare state is expected to drown at the base, and the middle-class is expected to labor themselves to death for the upper class, supporting a life of leisure.

We have become a want-based society. Long dead is a needs-based society and many people at the upper class feel their wants are more important than people's needs.

For the record. I have everything I need and want which isn't much.

Ok, now give me my lashings! Bring it!

They can't prove it. In fact they can prove that the rich will only save the money and not hire another person nor invest the money. So it's just a free gift to the rich.

I'm rich so I'd like that money. But honestly, anyone who is rich knows how to dodge paying taxes as I do, so I don't need the money the GOP wants to give me.

What's the perfect tax rate for the rich? 90%? 39? 36? 10%? It's funny that Republicans and Democrats pretend to be so different, when one of their biggest differences is a 3% change in the tax rate for a minority of Americans.

Perfect tax rate for the rich (defined here as over $500K annually) would be around 50%. That would leave them an adequate amount to live on, even their lifestyle and still allow the country enough tax money to run necessary programs without soacking the middle class.

Proven fact: during latter Reagan years, the wealthy heavily invested their tax savings in European villas, and Grand Cayman and Swiss type bank accounts

We had a test of that cutting taxes for the rich bullshit, called the Reagan Administration. According to Standard and Poors, FEWER jobs per year were created under Reagan than under Jimmy Carter.

Economists studying the Reagan tax cuts found that the cuts, which resulted in "deficits as far as the eye could see," actually resulted in jobs being exported oversees, due to the deficits REDUCING the ability of American firms to compete.

So, tax cuts for the rich actually result in FEWER, not more jobs being created.

Not only that. What does that tax rate tax? Its insane that we have this obsession with rates and don't even ask what that rate is being applied to. Without going into it, taxable income can be very different than actual income. But apparently Dems and Reps don't differ on that either since they hardly debate it. Is there anything on the table to get rid of the mortgage interest deduction for example? No difference on payroll taxes either. Not to mention the war. There is some difference on health care but only on how best to give billions of dollars to private insurance companies. Of course what is really wrong is the main stream media that plays up these phony differences.

asdfa wrote:

What's the perfect tax rate for the rich? 90%? 39? 36? 10%? It's funny that Republicans and Democrats pretend to be so different, when one of their biggest differences is a 3% change in the tax rate for a minority of Americans.

Clearly there is an optimal tax rate, although nobody really knows exactly what it is.

If the tax rate were 0, the government would collect no money. If it were 100%, it would also collect no money. So I don't know what the optimal rate is, and I doubt anyone else does, but too far in one direction is not good.

tax rates aren't half the story. you under report income but report enough to pay at the rate which won't be audited. your tax man know those rates. if you do get nabbed you jew it down with the irs and pay alot less. when you have money like i do you have many options like that. a better one is to shift income from one year to the next, then take a year off and not work or cash in, then let then pay the tax on the forwarded income, technically illegal to do yet the irs lets everyone do it since they pay up in the end.

HGHed wrote:

Clearly there is an optimal tax rate, although nobody really knows exactly what it is.

If the tax rate were 0, the government would collect no money. If it were 100%, it would also collect no money. So I don't know what the optimal rate is, and I doubt anyone else does, but too far in one direction is not good.

Zero is the correct answer.

This class warfare BS has got to stop. Obama's America I guess, and he's getting exactly what he wants; more folks pitted against each other. This looks like France in the late 1700's or early 20th century Russia for God's sake! Hey Timmy, you couldn't pay up? How about you Charlie Rangel? Hey John Kerry, your freaking boat still anchored in Rhoad Island? 500K is alot for a fancy sailboat, but you gotta do what you gotta do! Hypocrital elitist scumbags purposefully driving the country apart for their own political power and you lemmings eat it up! You knuckleheads can convince yourselves of anything I'll tell you. Unemployment benefits create jobs too, just ask Nancy.

we've seen this movie before wrote:

This class warfare BS has got to stop.

Oh shut up. As Warren Buffet has put it: "Yes, there is class warfare going on, and we (the rich) are WINNING it."

Here is a previous I made which of course was deleted:

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REPUBLICAN LEADERS, GIVER AMERICANS WHAT THEY WANT ON TAX CUTS!

Yes, republicans talk constantly about how Obama doesn't listen to the American people, whether it be on health care, the stimulus, or even tax cuts. They blabber uncontrollably about how "americans don't want their taxes raised! No tax hikes for ANYone!" they repeat until red in the face.

Yet.... (and this is so often the case with Republicans), the facts say otherwise.

A paltry 23% of americans want the Bush tax cuts continued for all.

But will that deter Republicans from continuing to spout that americans want all the Bush tax cuts continued??? Almost certainly not. They just don't really care about the facts of the matter (other facts they ignore on this issue: Bush tax cuts are a HUGE part of our current deficit that they scream so loudly about, and continuing Bush tax cuts for the rich are considered by the CBO to be the worst of 11 option on stimulating the economy and creating jobs). So what DO the republicans really care about ? Helping the richest americans, who need the least help. Incredibly, they will go to the mat, and stop any and all measure that might be good for this country (continuation of middle class tax cuts, START treaty, unemployment benefits, Don't Ask Don't Tell, deficit reduction, etc) in order to help those poor, unfortunate, rich people.

God Bless America, and God Bless the Republican Party.

Not Proven wrote:

They can't prove it. In fact they can prove that the rich will only save the money and not hire another person nor invest the money. So it's just a free gift to the rich.

I'm rich so I'd like that money. But honestly, anyone who is rich knows how to dodge paying taxes as I do, so I don't need the money the GOP wants to give me.

For it to be a gift from the government the government has to give money it already has to the Evil Rich Bastards. It's not doing that. What it is doing is taking less money from the ERBs at a lower rate than at a higher rate. Therefore the present rates are NOT a gift to the ERBs.

What someone else does with their money whether its investing it, hiring workers, or spending it is none of your damn business. You have no right to someone else's money either directly through theft or indirectly by getting the government to extort it from them and give it to you.

If you really are rich and think you're paying too little in taxes you are free to make donations to the government.

The problem really isn't about the rich creating jobs or not. The problem is that with low tax rates for the rich, it provides them the excess capital to squash smaller, more local businesses. Those smaller, local businesses provided jobs at medium wages. Once those businesses are replaced by the homogenized larger businesses, only lower wage jobs are provided locally. With less money being spent on the local level, the economy suffers, wages are reduced and jobs are lost.

Raising the tax rates on the rich would be a deterrent to drive other businesses out when the reward would not result in enough extra profit to make it worth doing.

Deregulating the utility companies has also greatly diminished jobs in the past few years. Virtually all the small local offices for gas, electric, and even water have been centralized and you may not even be calling someone in your state to set up service, let alone from your own town. It now takes up to a week just to get service on when it used to take one day.

For it to be a gift from the government the government has to give money it already has to the Evil Rich Bastards.

No it doesn't. Welfare gifts to the rich have been in existence since the cave man. Tyrants like the Tea Party and GOP have exploited the poor since the cave man.

so should the poor keep taking it or get out the pitchforks!when will the average man start working for his own interests?but a poor man never hired another person.a rich man doesn't either these days. he sends the jobs overseas.it's all really simple. start demanding change at home.

Not Proven wrote:

For it to be a gift from the government the government has to give money it already has to the Evil Rich Bastards.

No it doesn't. Welfare gifts to the rich have been in existence since the cave man. Tyrants like the Tea Party and GOP have exploited the poor since the cave man.

Not really. My income is above $250K and I can afford to pay my fair share. I know others can. Where I live is totaally upper income. In fact I'm a volunteer T&F person and travel all over using my own money helping out at meets, marathons, XC, RR.

TAXman wrote:

In the world of capitalism, how does cutting taxes for the wealthiest Mericans create jobs?

Cutting taxes improves job creation because ALL jobs, including government jobs, are fundamentally supported by the productive output of private enterprise. Taxes destoy job creation by confiscating the capital that private enterprise needs to invest and expand. Most of the time, businesses use their capital to expand as much as possible, creating jobs directly. However, jobs are still created even if business owners choose to save or spend their money. If they choose to save their money, the banks in which the money is saved use the savings to make loans, which in turn go to finance productive causes. People who want to "eat the rich" fail to appreciate that the only reason they can get loans for any purpose (home loans, student loans, car loans, credit cards, small business loans) is that RICH PEOPLE keep their money saved in banks, which in turn lend it out to everyone else. If the rich choose to spend their money, they support job creation on the demand side by giving money to businesses that employ people. In summary, the more money remains in the private sector, the more money is availible for economic activity.

taxing what? income or consumption?

And tax revenues get spent, and so are funneled back into the economy. The money does not disappear.

American Asian wrote:

taxing what? income or consumption?

And tax revenues get spent, and so are funneled back into the economy. The money does not disappear.

Government spending is generally money consumed, not saved or invested. Worse, government actions are often directly antagonistic to the productive efforts of private enterprise. The government confiscates resourses that businesses need to make the economy more productive, and uses the loot to fund activities which make the the economy less productive. Everyone loses, except government.