Why tax cuts dont create jobs

Discussion in 'Economy' started by Truthmatters, Dec 7, 2010.

  1. Truthmatters
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    Why Tax Cuts Don’t—and Won’t—Create Jobs - Working In These Times


    The idea that cutting business and wealthy investors' taxes originated in 1961 with then President John F. Kennedy. But at that time business investment tax cuts were tied to proven job creation. Businesses had to prove they added jobs before they could claim the tax cut. That was changed with Reagan. Now businesses could get the tax credits even if they didn't create jobs. Their taxes were cut even if it meant they reduced jobs. By the time of George W. Bush, businesses could claim tax cuts for investments made offshore. GM cut hundreds of thousands of jobs in the U.S. while adding thousands in China. Ford cut jobs while adding them in St. Petersburg, Russia. Corporations could claim the investment tax cuts, even if jobs were created offshore and simultaneously eliminated in the U.S. In effect, U.S. taxpayers were paying US corporations to send their jobs overseas.
     
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    Generally, the private sector does a better job than the public sector at creating jobs, at least over the long run. Thus, the more money in the hands of the private sector, the more jobs there will be.
     
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    I fully admit that it is true. In of themselves, tax cuts don't create jobs. I guess MY question is what is that an argument for? The only thing I can tell it would for is simply not using that argument because it is not entirely accurate. Is the fact that tax cuts in of themselves don't create jobs somehow suppossed to be an endorsement of some to other type of job creating policy?
     
    Last edited: Dec 7, 2010
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    You didnt read it did you.
     
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    Unemployment will stay at 10% or go higher until Obamacare is repealed.
     
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    You dont even know what you are talking about revere.
     
  8. CrusaderFrank
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    CrusaderFrank Diamond Member

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    Soviet style central planning failed for the Soviets, for Hoover, for FDR and now for Obama.

    Get a fucking clue.
     
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    Not if they are not given incentives to spend their tax cuts for job creation.
     
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    Banks have a trillion? What a fucking joke! They have 50 times that in bad derivatives
     

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