Tax increases do not create jobs.
And we've seen first hand that government spending doesn't create jobs either
Another post which offers conclusions of Republican talking points. Totally insipid and lacking any evidence to support either hypothesis.
Targeted tax cuts can stimulate the economy and lead to job growth; tax cuts to the rich do nothing, if they did we wouldn't have an unemployment problem today. Actually they do something, they help create debt as the government must borrow more than if the rich paid their fair share.
Same goes to the corporate welfare paid to Big Oil, Big Pharma and Big Farma.
I don't mean to go all academic on people, but significant tax cuts have been employed four times in the last 100 years, and every time they've been tried, they've worked:
1. President Harding, to avert the Great Depression of 1920. Unlike FDR, who dramatically expanded a recession into a depression, Harding used tax cuts and cuts to government spending (by nearly 50%!) to turn one of the sharpest ever depressions into what we now call the "Roaring 20s".
2. JFK reduced taxes on the rich from 90% leftover from FDR, to 70%. He achieved substantial job and general economic growth, averaging 6% from 1961-1966. JFK and LBJ created about 11 million jobs during their years in office. The US government revenues climbed about 60% as a result, proving rather effectively that (as JFK liked to say) "a rising tide lifts all boats".
3. The Reagan tax cuts increased GDP growth and job creation from a meager 2% under his successor to a peak of nearly 7% in Reagan's time. Economic prosperity almost doubled the size of the US GDP in Reagan's eight years, creating the longest peacetime expansions in US history. Unlike Harding, who was also able to slash government spending, Reagan faced a hostile, big-spending Congress, otherwise growth would have been much stronger. Still, Reagan's creation of 16 million jobs in 8 years, especially after the disastrous policies of his predecessors, is an amazing feat.
4. The Bush tax cuts spurred economic growth and job creation in the years from 2003 to 2008. In the aftermath of 9/11 and the Clinton Recession, Bush's tax cuts were able to keep growth on track while maintaining slow but steady job creation across the US economy over a very difficult five years. Although the 3 million jobs created by Bush sounds low compared to other administrations, were it not for his tax cuts, he would likely have presided over an economy that was a net job loser.
Anyway, back to the original question, above are four examples of tax cuts that created jobs. In fact, over the last 100 years, tax cutting is 4-for-4...care to compare that to liberal alternatives?
It's really, really simple...just remember that for every $100K you take out of the private sector, you LOSE one job. For every $100K you put back in to the private sector, you GET one job.
