Saturday, December 18, 2010

Cutting Taxes for Superwealthy Has NEVER Created Jobs

During the first three years of the Bush tax cuts, America’s job total actually went down, from 132 million jobs in 2001 to 131.4 million in 2004. Job growth did improve during Bush’s second term, but overall the rate was “anemic” compared to that under President Bill Clinton.

The problem is that when wealthy people are given more money, their main priority is usually to use it to make even more money.

Several economic studies have indicated that the wealthiest people -- the top 3 percent who make more than $250,000 per year -- are more likely to invest tax cuts in stocks or other assets than to create jobs. Democrats point out that this year many large American corporations are posting record profits without sinking that money into payroll. Instead of spending money on tax cuts, money should be spent on actual jobs -- which, in turn, will bring businesses the customers they need to thrive.

Bottom line: Giving a multi-millionaire or billionaire another tax cut is not going to create work. It will definetly add hundreds of billions to the deficit, but not create jobs. If that was the case, the Bush years would have shown unprecedented job creation. Instead, it was just the opposite. The idea that tax cuts create jobs shows a fundamental misreading of capitalism. Businesses hire when there is a market need, not when their taxes are cut. Why would a business hire more people if there are no more customers?

PS-- The rant in today's Sentinel was posted by the author: The sheer refusal to help Americans in need during the holiday season unless the wealthiest Americans get another tax cut they don't need and we can't afford is morally reprehensible.

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