Why tax cuts dont create jobs

[JBeukema]

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.

Then where are the jobs?

The more money in the hand of the working class -> the more they buy -> the more demand for goods and services -> the more money to be made by the bourgeoisie -> more jobs [repeat]

 

[JBeukema]

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.

Not if they are not given incentives to spend their tax cuts for job creation.

the only incentive to hire people is perceived demand for goods and services


The only way to achieve that is by ensuring the working class has money to spend. Hence tax cuts/breaks for the working class and policies intended to stimulate/encourage sustained consumer spending are the only effectual way to stimulate the economy. It should be pointed out for the dimwitted that government spending is artificial demand that deforms market demand and has a strong tendency to encourage long-term misinvestment. It's an artificial boom that more oft than not sets up a later bust.

 

[JBeukema]

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

Get a fucking clue.

So now you are against the tax cuts frankie?

I'm all for tax cuts.

I favor a 5 year moratorium on corporate income tax for any new business

I wonder how much the paperwork costs to form an entirely new 'corporation' (you know... just reincorporate) every four years and never pay corporate taxes

 

[JBeukema]

Some of the best years this country has had had 70 to 90 % tax rates on the 2%

The last time we had a marginal tax rate of 90%+ was in the 1950s, on incomes over $400,000 in 1950s dollars.

That would be the equivalent of $3.3M in 2010 dollars, which for those of us who can do math, is much much higher than the $250,000 Obama has identified as being the income level for the Evul Rich.

yes... Obama is raising the tax rate for those making to 90%

 

[Toro]

Then where are the jobs?

The more money in the hand of the working class -> the more they buy -> the more demand for goods and services -> the more money to be made by the bourgeoisie -> more jobs [repeat]

The reference you use in your argument is false. The fact that job growth was weak in the 00s does not imply higher taxes would have led to more job creation. Europe has higher taxes and greater income equality yet the US has outstripped Europe in job creation over the past two generations by mutiples.

As to your question regarding the jobs over the past 10 years, the lack of job creation was due to the type of economy we are in. After asset bubble collapses, such as the Tech Bubble, job creation is always weak. That is true everywhere. It is why job creation is even weaker today, given that the affects of the Housing Bubble collapse are even greater. That is why it is false to compare the past decade with the 50 years following WWII.

 

[boedicca]

Again, tax policy alone is not enough to foster a climate favorable to growth. The four pillars are:

- low and fair taxes
- spending controlled at a level that does not exceed tax receipts
- sound monetary policy
- rule of law with a regulatory environment that supports it

Without contrasting the situation among all four variables over the years, the comparisons are not valid.

 

[JBeukema]

I never said higher taxes would create jobs, you dolt

I said lowering taxes does not magically create jobs

 

[Bern80]

I never said higher taxes would create jobs, you dolt

I said lowering taxes does not magically create jobs

And for the umpteenth time, WHAT IS YOUR POINT? You guys aren't getting a lot of bites on this particular troll are you.

 

[JBeukema]

Damn, you're dense

FactCheck.org: Supply-side Spin

Tax cuts DO NOT increase tax revenue no matter how many times youy lie about it.

Well this proves democrats have zero understanding of human nature. So now your argument has turned they would be higher.


Different then your other rethoric.

1) Human nature is more complex than the laughable 'curve'

Ludwig von Mises Institute - Homepage

2) Republicans have no understanding of human nature or the economy. They think the rich make money and then hire just because. They fail to grasp that the sole reason for hiring is because there is a demand to be met and potential to make profit by meeting it. 'Supply-side' does not work, has not worked, and will never work. The only way to stimulate the economy and give businesses a reason to hire is by increasing demand. You increase demand by ensuring that the working class has money to spend on things they want, thereby creating demand. There's a reason these companies sell their goods in the U.S. and not to the exploited poor in China and Indonesia. The latter do not have the money to spend- they create no demand, so there is no money to be made selling to them. That is why we are the consumers and they are not.

When the rich exploit the proletariat and the common man has no excess income to spend on things he desires, the bourgeoisie ultimately undoes itself, as there is no demand for the capitalists' goods and services. After all, the bourgeoisie already have plenty of money- a few extra grand will not encourage a millionaire to buy anything new or create any new demand for anyone else's goods or services.

Today's homework assignment:
1) Define:
-marginal utility
-surplus value
-demand

2) Explain the relationship between marginal utility, market demand, and the working man's discretionary income

3) Explore how this explains the rate of market return of tax cuts for the wealthy as compared to unemployment assistance and tax cuts for the working class. Explain the logical fallacy of the 'Laffer Curve', using Austrian behavioral economic theory.

4) Explore how these interactions explain the growth of the United States and its economy, including the rising standard of living and increased surplus value experienced by both worker and capitalist following the fairer-wage progress of the labour movement in the U.S.

 

[boedicca]

I never said higher taxes would create jobs, you dolt

I said lowering taxes does not magically create jobs

Fuck off.

 

[Toro]

I never said higher taxes would create jobs, you dolt

I said lowering taxes does not magically create jobs

I agree with that. But you are more likely to create jobs with a lower tax rate, especially on profits and capital. However it is not a panacea for everything.

 

[JBeukema]

I never said higher taxes would create jobs, you dolt

I said lowering taxes does not magically create jobs

Fuck off.

a brilliant rebuttal

'FUCK OFF! YES THEY DO!'

 

[boedicca]

It's the only reply your statement deserves.

 

[william the wie]

Taxes of all kind have to be considered. Dropping the corporate income tax to say 12.5% would create a lot of jobs but mostly in states with low state corporate tax rates.

 

[JBeukema]

The biggest corporations at 0 in taxes

 

[JBeukema]

It's the only reply your statement deserves.

right.. because tax cuts have to be magic! they just HAVE to be!

 

[william the wie]

The biggest corporations at 0 in taxes

After jumping through uneconomic PC hoops.

 

[cawacko]

""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.""

This quote is from the article. Has anyone ever heard this before?

 

[cawacko]

because the Rs are holding the country hostage by threatening to filibuster everything else congress does.

Newt and the Republicans threatened to shut down the government and after they did Clinton's approval ratings shot up. If high tax rates are so popular with the people the voters and the polls will kill the Republicans over shutting down Congress. The Democrats need to stand on their principle and fight it.

 

[william the wie]

because the Rs are holding the country hostage by threatening to filibuster everything else congress does.

Newt and the Republicans threatened to shut down the government and after they did Clinton's approval ratings shot up. If high tax rates are so popular with the people the voters and the polls will kill the Republicans over shutting down Congress. The Democrats need to stand on their principle and fight it.

Neither major has any priniciples they have activists, lobbyists and perks.