Tax Cuts For The Poor And Middle Class -- Not The Rich -- Create Jobs

[Marxist]

Tax Cuts For The Poor And Middle Class -- Not The Rich -- Create Jobs Research Shows

The exact link between tax cuts and job growth has for years been a matter of fiery debate, from college economics departments to the chambers of Congress. Now, a working paper from the National Bureau of Economic Research could add some nuance to the dispute: Tax cuts do, in fact, boost employment and investment, just not when they’re directed at the rich.

The study from Owen Zidar, a professor at the University of Chicago Booth School of Business, found that tax cuts aimed at the top 10 percent of earners produce little stimulative effect on the overall economy. On the other hand, those aimed at the bottom 90 percent have a greater impact.

Zidar examined the short- to medium-term impact of tax changes at the state and federal levels going back to 1948. On the national level, he found a 1 percent gross domestic product (GDP) tax cut aimed at the bottom 90 percent translates to job growth of 2 to 5 percent, but the impact of a similar cut on the top 10 percent of earners has a negligible effect. He reached similar conclusions on the state level: Tax decreases for most of the population generated 5 percent employment growth, but yielded little change when applied to the top income bracket.

Tax hikes produce similar effects, the paper says. When applied to the rich, they’re insignificant. But when applied to the rest of the population, they have a negative effect on economic activity.

Zidar contends that his is the first paper to quantify the economic impact of tax cuts on different income levels -- something he acknowledges is “a very hard problem to tackle” because of a relative lack of data points. But he overcomes that challenge, in part, he says, by looking more closely at the regional impact of tax shocks. In other words, Connecticut, with its high proportion of top income earners, responds differently to tax cuts than Mississippi.

Zidar says the paper carries policy implications, too. If lawmakers want to stimulate job growth, “this suggests payroll tax reform could be a pretty powerful tool,” he says. Scrapping those taxes up to a certain amount would be a far more effective means of creating jobs than say, slashing income taxes on the top 1 percent.

The paper is also an academic rebuttal of sorts to former Republican presidential candidate Mitt Romney’s infamous slam of the 47 percent “who pay no income tax.” More tax breaks for the masses are actually a good thing, Zidar’s research suggests.

Likewise, the paper suggests expanding programs like the Earned Income Tax Credit -- which applies largely to working class families -- would be healthy for the overall economy.

 

[Avatar4321]

Why do you people object to lowering the burden on all people so much?

 

[Marxist]

Why do you people object to lowering the burden on all people so much?

Are you talking to me?

 

[whitehall]

The "poor" don't pay income tax. Look at the ads New York state is putting out. NYS practically begs corporations to relocate and the hook is low taxes. A liberal bastion admits that low corporate, property and income tax brings in business. What a concept.

 

[Marxist]

The "poor" don't pay income tax. Look at the ads New York state is putting out. NYS practically begs corporations to relocate and the hook is low taxes. A liberal bastion admits that low corporate, property and income tax brings in business. What a concept.

Oh god, here we go.. They cannot really afford to pay income tax, and this doesn't only include the poor, it also includes the middle class. Their are different types of taxes as well, and the poor pay more based on their percentage of income.

 

[whitehall]

Even a marxist should be aware that the top 20% of wage earners pay 90% of the taxes. I think the poor and middle class should get a bigger tax break but so should the top 20%.

 

[Marxist]

Even a marxist should be aware that the top 20% of wage earners pay 90% of the taxes. I think the poor and middle class should get a bigger tax break but so should the top 20%.

Yeah, and how much do they take in/own compared to everyone else? Giving the top tax breaks literally makes no sense, remember when the tax was massively high on the top earners? We did fine.

 

[Mr. H.]

If I am to grow my company through the advantages of tax cuts in order to expand operations and employ more middle class, you can bet your sweet ass those tax cuts benefit that middle class.

Fuckin' Brotch.

 

[Marxist]

If I am to grow my company through the advantages of tax cuts in order to expand operations and employ more middle class, you can bet your sweet ass those tax cuts benefit that middle class.

Fuckin' Brotch.

Oh for the love of...
Let's ignore the massive tax rates post world war 2 when people prospered, let's ignore that these companies aren't employing the middle class, they're going to exploit cheap labor in third world countries, let's ignore the unmoving wages, the rising cost of living...

 

[Mr. H.]

Oh yeah- you're the new guy on the block. Let me explain...

Brotch is the confluence of Bitch and Bro. It is both demeaning and complimentary.

Here's another Brotch slap for good measure....

 

[Mr. H.]

If I am to grow my company through the advantages of tax cuts in order to expand operations and employ more middle class, you can bet your sweet ass those tax cuts benefit that middle class.

Fuckin' Brotch.

Oh for the love of...
Let's ignore the massive tax rates post world war 2 when people prospered, let's ignore that these companies aren't employing the middle class, they're going to exploit cheap labor in third world countries, let's ignore the unmoving wages, the rising cost of living...

The hydrocarbon industries employ tens of millions of middle class and pay them well. Globally.

 

[Marxist]

If I am to grow my company through the advantages of tax cuts in order to expand operations and employ more middle class, you can bet your sweet ass those tax cuts benefit that middle class.

Fuckin' Brotch.

Oh for the love of...
Let's ignore the massive tax rates post world war 2 when people prospered, let's ignore that these companies aren't employing the middle class, they're going to exploit cheap labor in third world countries, let's ignore the unmoving wages, the rising cost of living...

The hydrocarbon industries employ tens of millions of middle class and pay them well. Globally.

That isn't the point, they would still prosper even with higher taxes.

 

[Mr. H.]

If I am to grow my company through the advantages of tax cuts in order to expand operations and employ more middle class, you can bet your sweet ass those tax cuts benefit that middle class.

Fuckin' Brotch.

Oh for the love of...
Let's ignore the massive tax rates post world war 2 when people prospered, let's ignore that these companies aren't employing the middle class, they're going to exploit cheap labor in third world countries, let's ignore the unmoving wages, the rising cost of living...

The hydrocarbon industries employ tens of millions of middle class and pay them well. Globally.

That isn't the point, they would still prosper even with higher taxes.

Higher taxes on the oil and natural gas industries, as proposed in Obama's budget which includes over $40 billion in new taxes, would result in the loss of hundreds of thousands of jobs in the U.S. Tens of thousands have been laid off in the last several months alone due to declining crude prices. These proposed taxes would be the death knell to these industries and would lead to the termination of tens of thousands more middle class jobs.

Get your ass back to school, s0n.

 

[Marxist]

If I am to grow my company through the advantages of tax cuts in order to expand operations and employ more middle class, you can bet your sweet ass those tax cuts benefit that middle class.

Fuckin' Brotch.

Oh for the love of...
Let's ignore the massive tax rates post world war 2 when people prospered, let's ignore that these companies aren't employing the middle class, they're going to exploit cheap labor in third world countries, let's ignore the unmoving wages, the rising cost of living...

The hydrocarbon industries employ tens of millions of middle class and pay them well. Globally.

That isn't the point, they would still prosper even with higher taxes.

Higher taxes on the oil and natural gas industries, as proposed in Obama's budget which includes over $40 billion in new taxes, would result in the loss of hundreds of thousands of jobs in the U.S. Tens of thousands have been laid off in the last several months alone due to declining crude prices. These proposed taxes would be the death knell to these industries and would lead to the termination of tens of thousands more middle class jobs.

Get your ass back to school, s0n.

Yeah, the declining crude prices are obviously due to a higher tax in one specific country to a specific group... Come on man, I'm not even talking about that. You ignored my point on the massive tax we had on the top earners, and the fact that we worked fine. Come on dude... "would be the death knell" Yeah, so you don't have anything to base it on.

 

[Mr. H.]

If I am to grow my company through the advantages of tax cuts in order to expand operations and employ more middle class, you can bet your sweet ass those tax cuts benefit that middle class.

Fuckin' Brotch.

Oh for the love of...
Let's ignore the massive tax rates post world war 2 when people prospered, let's ignore that these companies aren't employing the middle class, they're going to exploit cheap labor in third world countries, let's ignore the unmoving wages, the rising cost of living...

The hydrocarbon industries employ tens of millions of middle class and pay them well. Globally.

That isn't the point, they would still prosper even with higher taxes.

Higher taxes on the oil and natural gas industries, as proposed in Obama's budget which includes over $40 billion in new taxes, would result in the loss of hundreds of thousands of jobs in the U.S. Tens of thousands have been laid off in the last several months alone due to declining crude prices. These proposed taxes would be the death knell to these industries and would lead to the termination of tens of thousands more middle class jobs.

Get your ass back to school, s0n.

Yeah, the declining crude prices are obviously due to a higher tax in one specific country to a specific group... Come on man, I'm not even talking about that. You ignored my point on the massive tax we had on the top earners, and the fact that we worked fine. Come on dude... "would be the death knell" Yeah, so you don't have anything to base it on.

Thanks for proving your irrelevance. You came in with a roar, and you've just gone out with a whimper.

 

[Marxist]

Oh for the love of...
Let's ignore the massive tax rates post world war 2 when people prospered, let's ignore that these companies aren't employing the middle class, they're going to exploit cheap labor in third world countries, let's ignore the unmoving wages, the rising cost of living...

The hydrocarbon industries employ tens of millions of middle class and pay them well. Globally.

That isn't the point, they would still prosper even with higher taxes.

Higher taxes on the oil and natural gas industries, as proposed in Obama's budget which includes over $40 billion in new taxes, would result in the loss of hundreds of thousands of jobs in the U.S. Tens of thousands have been laid off in the last several months alone due to declining crude prices. These proposed taxes would be the death knell to these industries and would lead to the termination of tens of thousands more middle class jobs.

Get your ass back to school, s0n.

Yeah, the declining crude prices are obviously due to a higher tax in one specific country to a specific group... Come on man, I'm not even talking about that. You ignored my point on the massive tax we had on the top earners, and the fact that we worked fine. Come on dude... "would be the death knell" Yeah, so you don't have anything to base it on.

Thanks for proving your irrelevance. You came in with a roar, and you've just gone out with a whimper.

Please, show me how I am wrong instead of spewing useless talk.

 

[Mr. H.]

The hydrocarbon industries employ tens of millions of middle class and pay them well. Globally.

That isn't the point, they would still prosper even with higher taxes.

Higher taxes on the oil and natural gas industries, as proposed in Obama's budget which includes over $40 billion in new taxes, would result in the loss of hundreds of thousands of jobs in the U.S. Tens of thousands have been laid off in the last several months alone due to declining crude prices. These proposed taxes would be the death knell to these industries and would lead to the termination of tens of thousands more middle class jobs.

Get your ass back to school, s0n.

Yeah, the declining crude prices are obviously due to a higher tax in one specific country to a specific group... Come on man, I'm not even talking about that. You ignored my point on the massive tax we had on the top earners, and the fact that we worked fine. Come on dude... "would be the death knell" Yeah, so you don't have anything to base it on.

Thanks for proving your irrelevance. You came in with a roar, and you've just gone out with a whimper.

Please, show me how I am wrong instead of spewing useless talk.

Too late, Brotch. You goin' on ignore.

 

[Marxist]

That isn't the point, they would still prosper even with higher taxes.

Higher taxes on the oil and natural gas industries, as proposed in Obama's budget which includes over $40 billion in new taxes, would result in the loss of hundreds of thousands of jobs in the U.S. Tens of thousands have been laid off in the last several months alone due to declining crude prices. These proposed taxes would be the death knell to these industries and would lead to the termination of tens of thousands more middle class jobs.

Get your ass back to school, s0n.

Yeah, the declining crude prices are obviously due to a higher tax in one specific country to a specific group... Come on man, I'm not even talking about that. You ignored my point on the massive tax we had on the top earners, and the fact that we worked fine. Come on dude... "would be the death knell" Yeah, so you don't have anything to base it on.

Thanks for proving your irrelevance. You came in with a roar, and you've just gone out with a whimper.

Please, show me how I am wrong instead of spewing useless talk.

Too late, Brotch. You goin' on ignore.

Jesus christ, do you ignore everyone who wants actual discussion when you cannot provide anything to back your claims?

 

[whitehall]

Even a marxist should be aware that the top 20% of wage earners pay 90% of the taxes. I think the poor and middle class should get a bigger tax break but so should the top 20%.

Yeah, and how much do they take in/own compared to everyone else? Giving the top tax breaks literally makes no sense, remember when the tax was massively high on the top earners? We did fine.

How much do they own compared to everyone else? How is that an issue after they pay 90% of income tax revenue not to mention the real estate taxes and sales tax on the stuff that they own? Here's a thought. Try the class envy stuff on Hollywood before you think about robbing corporate CEO's who actually produce tangible stuff that we need to survive in the modern world. Actors don't contribute much to society besides about an hour of moderate entertainment per month to the average American but they flaunt their wealth in ways that should be repugnant to true marxists. Start a movement that puts Hollywood union workers closer to the pay grade of actors and let us know how you make out after they cancel the obscene display of wealth in the so-called "Academy Awards".

 

[edthecynic]

Even a marxist should be aware that the top 20% of wage earners pay 90% of the taxes. I think the poor and middle class should get a bigger tax break but so should the top 20%.

First of all they pay 68.8& of federal taxes, but that is not the deception in that stat.Wage earners do pay the bulk of the taxes, but the top 20% of WAGE EARNERS are NOT the wealthy, who do not work for the common wage and therefore pay little or no taxes. Even your MessiahRushie, who often parrots the same deception, is forced to admit the wealthy are mostly untouched by the tax system.

August 7, 2007
CALLER: And, you know, and the way our tax system works, we have an overly complex system, which in and of itself is a problem, but the way our tax system works and the way the tax laws are written, it's based on a few kind of like hinge numbers like adjusted gross income and taxable income, and while the soak the rich -- or however you choose to describe it -- really doesn't come down that way. It really comes down to much lower income levels.

RUSH: It does, exactly, and here's the dirty little secret if you ever to pull it off. It's hard. This is why most people don't understand the tax-the-rich business. You've got to structure your life so you have no "earned" income. I'm out of time. I'll explain that. There's a category called earned income versus other kinds of income. Earned income is what the income tax rate is on. That's how "the rich" do it. They don't have "earned" income.

END TRANSCRIPT

The Truth About Taxes
August 6, 2007
RUSH: I've told you before: the income tax is designed to keep people like his [Buffett's] secretary from becoming wealthy! There is no "wealth" tax. So this is a big misnomer. ...

But there's no tax on wealth. There is a tax on income, and the tax on income is designed to keep everybody who is not wealthy from getting there.

I'm talking about genuine wealth, not the way Democrats define "rich."