Do Tax Cuts Create Jobs?

[Flaylo]

Do Tax Cuts Create Jobs? - Forbes

It’s a mainstay of conservative orthodoxy that tax cuts create jobs. In fact, the complexity of the tax code does create jobs for high-priced tax attorneys and accountants. But do tax cuts create “real” jobs?


The answer appears to be no for companies big and small. After all, U.S. public companies pay well-below the official 35% tax rate while 13.5 million American workers search unsuccessfully for jobs And start ups tell me that tax cuts don’t affect whether they’ll create new jobs. In short, the tax cut rhetoric, while effective politics, is lousy economics.

George H. W. Bush wisely pointed out in his 1980 debate with Ronald Reagan that expecting to balance the budget with tax cuts and defense spending increases was “voodoo economics.” But along with Reagan’s ascendancy came the rise of huge budget deficits — that Bush wisely helped end when he agreed to raise taxes in 1990.



Despite $858 billion in December 2010 tax cuts, companies still complain that they pay too much in tax. General Electric (GE) has become famous for paying no taxes on its $5.1 billion in 2010 U.S. profits while keeping a big staff of lawyers on hand to make sure it pays as few of them as possible. Meanwhile, the New York Times reports that GE is not alone and that the prevailing estimate for the actual U.S. corporate tax rate is 25% — costing the U.S. about $100 billion in lost revenue.

But corporations have absolutely no reason to complain about taxes. After all, they earned record 2010 profits of $1.68 trillion and 85% of them are beating their first quarter 2011 earnings estimates as 70% are growing revenue faster than expected while their operating margins stand at a near record 19.8%.

And companies are achieving that record profitability by squeezing workers. After all, 2010 productivity rose 3.9% while unit labor costs fell 1.5%. To get more work out of the same number of workers while paying them less, it helps to have 13.5 million people out of work and the easy ability to hire part-time labor and outsource to countries that pay much lower wages.

So tax cuts have not spurred big companies to create jobs. But what about start ups? Based on my October 2010 interviews with 17 start up CEOs, my conclusion is that not a single one of them would create a job based on tax cuts. All of them told me that their decision to create a new job would be based on whether the long-term cost of that new job would be offset by higher revenues and profits.

Dedicated to all you right wing dogma junkies.

 

[auditor0007]

Do Tax Cuts Create Jobs? - Forbes

It’s a mainstay of conservative orthodoxy that tax cuts create jobs. In fact, the complexity of the tax code does create jobs for high-priced tax attorneys and accountants. But do tax cuts create “real” jobs?


The answer appears to be no for companies big and small. After all, U.S. public companies pay well-below the official 35% tax rate while 13.5 million American workers search unsuccessfully for jobs And start ups tell me that tax cuts don’t affect whether they’ll create new jobs. In short, the tax cut rhetoric, while effective politics, is lousy economics.

George H. W. Bush wisely pointed out in his 1980 debate with Ronald Reagan that expecting to balance the budget with tax cuts and defense spending increases was “voodoo economics.” But along with Reagan’s ascendancy came the rise of huge budget deficits — that Bush wisely helped end when he agreed to raise taxes in 1990.



Despite $858 billion in December 2010 tax cuts, companies still complain that they pay too much in tax. General Electric (GE) has become famous for paying no taxes on its $5.1 billion in 2010 U.S. profits while keeping a big staff of lawyers on hand to make sure it pays as few of them as possible. Meanwhile, the New York Times reports that GE is not alone and that the prevailing estimate for the actual U.S. corporate tax rate is 25% — costing the U.S. about $100 billion in lost revenue.

But corporations have absolutely no reason to complain about taxes. After all, they earned record 2010 profits of $1.68 trillion and 85% of them are beating their first quarter 2011 earnings estimates as 70% are growing revenue faster than expected while their operating margins stand at a near record 19.8%.

And companies are achieving that record profitability by squeezing workers. After all, 2010 productivity rose 3.9% while unit labor costs fell 1.5%. To get more work out of the same number of workers while paying them less, it helps to have 13.5 million people out of work and the easy ability to hire part-time labor and outsource to countries that pay much lower wages.

So tax cuts have not spurred big companies to create jobs. But what about start ups? Based on my October 2010 interviews with 17 start up CEOs, my conclusion is that not a single one of them would create a job based on tax cuts. All of them told me that their decision to create a new job would be based on whether the long-term cost of that new job would be offset by higher revenues and profits.

Dedicated to all you right wing dogma junkies.

If tax rates are too high, then cutting taxes does put more money into play, which in theory, should lead to more spending and more jobs. However, if cutting taxes is done just so that Peter can pay Paul, then there is no benefit. We have been in that situation for quite some time now, and cutting taxes further is not the answer. If it had been the answer, unemployment would be 5% now instead of 10% to 15%.

 

[ba1614]

I know it's a dirty couple words to you taxoholics, but "CUT THE FUCKING SPENDING"!

 

[Flaylo]

I know it's a dirty couple words to you taxoholics, but "CUT THE FUCKING SPENDING"!

Yeah fucktard, cut spending until conditions arise to increase spending once again.

 

[rdean]

Do Tax Cuts Create Jobs? - Forbes

It’s a mainstay of conservative orthodoxy that tax cuts create jobs. In fact, the complexity of the tax code does create jobs for high-priced tax attorneys and accountants. But do tax cuts create “real” jobs?


The answer appears to be no for companies big and small. After all, U.S. public companies pay well-below the official 35% tax rate while 13.5 million American workers search unsuccessfully for jobs And start ups tell me that tax cuts don’t affect whether they’ll create new jobs. In short, the tax cut rhetoric, while effective politics, is lousy economics.

George H. W. Bush wisely pointed out in his 1980 debate with Ronald Reagan that expecting to balance the budget with tax cuts and defense spending increases was “voodoo economics.” But along with Reagan’s ascendancy came the rise of huge budget deficits — that Bush wisely helped end when he agreed to raise taxes in 1990.



Despite $858 billion in December 2010 tax cuts, companies still complain that they pay too much in tax. General Electric (GE) has become famous for paying no taxes on its $5.1 billion in 2010 U.S. profits while keeping a big staff of lawyers on hand to make sure it pays as few of them as possible. Meanwhile, the New York Times reports that GE is not alone and that the prevailing estimate for the actual U.S. corporate tax rate is 25% — costing the U.S. about $100 billion in lost revenue.

But corporations have absolutely no reason to complain about taxes. After all, they earned record 2010 profits of $1.68 trillion and 85% of them are beating their first quarter 2011 earnings estimates as 70% are growing revenue faster than expected while their operating margins stand at a near record 19.8%.

And companies are achieving that record profitability by squeezing workers. After all, 2010 productivity rose 3.9% while unit labor costs fell 1.5%. To get more work out of the same number of workers while paying them less, it helps to have 13.5 million people out of work and the easy ability to hire part-time labor and outsource to countries that pay much lower wages.

So tax cuts have not spurred big companies to create jobs. But what about start ups? Based on my October 2010 interviews with 17 start up CEOs, my conclusion is that not a single one of them would create a job based on tax cuts. All of them told me that their decision to create a new job would be based on whether the long-term cost of that new job would be offset by higher revenues and profits.

Dedicated to all you right wing dogma junkies.

Actually, the answer is partially yes. The ONLY thing that creates jobs is demand. That's one of the basics of capitalism. If people have a few extra bucks and spend it, then that could lead to jobs. If they save it, then no. If they have no job, then no. If there is no demand, then no. That's how it works in the real world.

In Republicanland, if you give companies subsidies, they will magically create jobs without healthcare and at less then minimum wage. But that stops at the border of Republicanland.

 

[ba1614]

I know it's a dirty couple words to you taxoholics, but "CUT THE FUCKING SPENDING"!

Yeah fucktard, cut spending until conditions arise to increase spending once again.

No, "fucktard", cut spending, and then cut it some more. It's about time everyone, corporations, banks, unions, individuals, everyone, get rid of this notion of government being responsible for every fucking nosebleed in the country, hell, world.

 

[NYcarbineer]

I know it's a dirty couple words to you taxoholics, but "CUT THE FUCKING SPENDING"!

How would that create jobs? ...given that job creation is the topic of this thread...

 

[ba1614]

I know it's a dirty couple words to you taxoholics, but "CUT THE FUCKING SPENDING"!

How would that create jobs? ...given that job creation is the topic of this thread...

That's the difference between us, you think it's up to government to create jobs for you, I want them to get out of the way and let America do what America does, or used to do. Get government out of the way and the jobs will come.

 

[Flaylo]

I know it's a dirty couple words to you taxoholics, but "CUT THE FUCKING SPENDING"!

How would that create jobs? ...given that job creation is the topic of this thread...

That's the difference between us, you think it's up to government to create jobs for you, I want them to get out of the way and let America do what America does, or used to do. Get government out of the way and the jobs will come.

You have no answer basically, do you fucktard?, Cut the bullshit and come clean.

 

[Full-Auto]

I know it's a dirty couple words to you taxoholics, but "CUT THE FUCKING SPENDING"!

How would that create jobs? ...given that job creation is the topic of this thread...

That's the difference between us, you think it's up to government to create jobs for you, I want them to get out of the way and let America do what America does, or used to do. Get government out of the way and the jobs will come.

Americas Business was business.

With dems in charge who the hell knows what we are.

 

[Billy000]

Do Tax Cuts Create Jobs? - Forbes

It’s a mainstay of conservative orthodoxy that tax cuts create jobs. In fact, the complexity of the tax code does create jobs for high-priced tax attorneys and accountants. But do tax cuts create “real” jobs?


The answer appears to be no for companies big and small. After all, U.S. public companies pay well-below the official 35% tax rate while 13.5 million American workers search unsuccessfully for jobs And start ups tell me that tax cuts don’t affect whether they’ll create new jobs. In short, the tax cut rhetoric, while effective politics, is lousy economics.

George H. W. Bush wisely pointed out in his 1980 debate with Ronald Reagan that expecting to balance the budget with tax cuts and defense spending increases was “voodoo economics.” But along with Reagan’s ascendancy came the rise of huge budget deficits — that Bush wisely helped end when he agreed to raise taxes in 1990.



Despite $858 billion in December 2010 tax cuts, companies still complain that they pay too much in tax. General Electric (GE) has become famous for paying no taxes on its $5.1 billion in 2010 U.S. profits while keeping a big staff of lawyers on hand to make sure it pays as few of them as possible. Meanwhile, the New York Times reports that GE is not alone and that the prevailing estimate for the actual U.S. corporate tax rate is 25% — costing the U.S. about $100 billion in lost revenue.

But corporations have absolutely no reason to complain about taxes. After all, they earned record 2010 profits of $1.68 trillion and 85% of them are beating their first quarter 2011 earnings estimates as 70% are growing revenue faster than expected while their operating margins stand at a near record 19.8%.

And companies are achieving that record profitability by squeezing workers. After all, 2010 productivity rose 3.9% while unit labor costs fell 1.5%. To get more work out of the same number of workers while paying them less, it helps to have 13.5 million people out of work and the easy ability to hire part-time labor and outsource to countries that pay much lower wages.

So tax cuts have not spurred big companies to create jobs. But what about start ups? Based on my October 2010 interviews with 17 start up CEOs, my conclusion is that not a single one of them would create a job based on tax cuts. All of them told me that their decision to create a new job would be based on whether the long-term cost of that new job would be offset by higher revenues and profits.

Dedicated to all you right wing dogma junkies.

Not only that, but they need to be paid for. Bush's tax cuts will total 8 trillion added to the deficit.

 

[GWV5903]

I know it's a dirty couple words to you taxoholics, but "CUT THE FUCKING SPENDING"!

How would that create jobs? ...given that job creation is the topic of this thread...

That's the difference between us, you think it's up to government to create jobs for you, I want them to get out of the way and let America do what America does, or used to do. Get government out of the way and the jobs will come.

They will never, I repeat never understand this...

 

[Sallow]

They create jobs if it adds disposable income to people that will spend it. Otherwise..absolutely not.

 

[Sallow]

I know it's a dirty couple words to you taxoholics, but "CUT THE FUCKING SPENDING"!

How would that create jobs? ...given that job creation is the topic of this thread...

That's the difference between us, you think it's up to government to create jobs for you, I want them to get out of the way and let America do what America does, or used to do. Get government out of the way and the jobs will come.

Amercian business exists because of American Government. This country was not founded by businessmen.

 

[Sallow]

I know it's a dirty couple words to you taxoholics, but "CUT THE FUCKING SPENDING"!

Hard enough as it is to believe..but spending cuts by the government means job cuts.

Government spending, despite the right wing buffoonery about this topic, actually creates jobs. Moreso then tax cuts.

 

[Flaylo]

How would that create jobs? ...given that job creation is the topic of this thread...

That's the difference between us, you think it's up to government to create jobs for you, I want them to get out of the way and let America do what America does, or used to do. Get government out of the way and the jobs will come.

They will never, I repeat never understand this...

You fucktards sound like those wild west cowboys in those spaghetti westerns, lol.

 

[Full-Auto]

That's the difference between us, you think it's up to government to create jobs for you, I want them to get out of the way and let America do what America does, or used to do. Get government out of the way and the jobs will come.

They will never, I repeat never understand this...

You fucktards sound like those wild west cowboys in those spaghetti westerns, lol.

And you come across as an idiot.

Is there a greater point here?

 

[ba1614]

How would that create jobs? ...given that job creation is the topic of this thread...

That's the difference between us, you think it's up to government to create jobs for you, I want them to get out of the way and let America do what America does, or used to do. Get government out of the way and the jobs will come.

You have no answer basically, do you fucktard?, Cut the bullshit and come clean.

Again "fucktard"(is that the word of the day, or month for you or something?), I'm not sure what more you want besides my belief that if you get government out of the way, jobs will come. They sure as hell won't come as a result of higher taxes.
You'll find elsewhere on this forum that I advocate getting rid of every single tax deduction there is, hence my stance of everyone getting off the government teat.

 

[rdean]

That's the difference between us, you think it's up to government to create jobs for you, I want them to get out of the way and let America do what America does, or used to do. Get government out of the way and the jobs will come.

You have no answer basically, do you fucktard?, Cut the bullshit and come clean.

Again "fucktard"(is that the word of the day, or month for you or something?), I'm not sure what more you want besides my belief that if you get government out of the way, jobs will come. They sure as hell won't come as a result of higher taxes.
You'll find elsewhere on this forum that I advocate getting rid of every single tax deduction there is, hence my stance of everyone getting off the government teat.

You drooled a little bit. Riiiight there! Ok, got it.

 

[GWV5903]

That's the difference between us, you think it's up to government to create jobs for you, I want them to get out of the way and let America do what America does, or used to do. Get government out of the way and the jobs will come.

They will never, I repeat never understand this...

You fucktards sound like those wild west cowboys in those spaghetti westerns, lol.

Is that all you have? Spaghetti Westerns? Desperate must be a low place to be...