LAT: Are Bush's Tax Cuts (creating jobs)?

[DeepModem Mom]

THE RACE FOR THE WHITE HOUSE
Are Bush's Tax Cuts Doing the Job?
The president argues that a Kerry rollback of high-bracket cuts would deter hiring, but many entrepreneurs and small businesses hire no one.

By Warren Vieth, Times Staff Writer


WASHINGTON — In appearances across the country, President Bush contends that the tax proposals of Sen. John F. Kerry would shut down a powerful engine of employment growth in America.

Kerry's plan to roll back income tax reductions for the wealthy, the president says, would "raise taxes for the 900,000 small businesses and entrepreneurs … who are creating most of the new jobs in our changing economy."

There's no question some of the wealthy tax filers whose taxes would go up if Kerry's plan were enacted are the kind of corner-store proprietors and growth-company entrepreneurs Bush likes to describe in his speeches. Some clearly have created lots of jobs.

But statistics show that only 1 in 25 small-business owners would be affected by Kerry's tax increases. Of those who would get hit, half have no employees other than themselves. They include lawyers, accountants, consultants and investors who fall within Bush's generous definition of small business....


http://www.latimes.com/news/politics/la-na-taxes29sep29,1,3472385.story?coll=la-home-politics

[chelsea0011]

1. Maybe I'm just ignorant, but I can't believe income tax reductions

on the wealthiest create job growth.

[Orangepeel]

7. American jobs? not really

the theory goes that if you give these people money they will use it to invest in businesses. Those businesses will then grow (or be started up in the first place) and hire people as they expand.

but will they? the chances are good that they won't start new businesses. They might invest in the stock market, which would mean more profits which would mean more dividends which would give these same people more money to invest in the stock market. That might be good for my 401K, assuming I've already got a good job with benefits.

But the chances are also very good that they will invest in a foreign businesses and won't do anything for Americans (unless you take a circuitous path in which foreign economies grow and they buy more American products and that makes our businesses grow.

It makes much more sense to use that money (and there would be money if bush hadn't blown the surplus) to do what you want to do directly. Help new businesses hire more people. Give the tax breaks for that directly. Or, better yet, help them hire and support employees by lightening the burden of health care expenses.

[DBoon]

10. Yes they do

Jobs for maids and butlers, Mercedes-Benz salesmen, realtors in affluent neighborhoods, etc.

You know - the personal valets for the wealthy. Just like in every other banana republic.

[ProfessorGAC]

22. They Don't

Marginal tax rates have NOTHING to do with tax growth. There is no economist or social scientist out here who can show anybody one shred of data to support that this actually occurs.

As a matter of fact, the data is actually tipped the other way. Job growth and unemployment decline have tended to trend downward when marginal personal tax rates were a bit higher.

I'm not suggesting any causative relationship here. But, when the data trend the opposite direction of the hypotheses of the tax cutters, it ceratinly does suggest that the tax-cut enthusiasts are wrong.
The Professor

[stellanoir]

2. I thought trickle down economics. . .

was proven to be bogus in the 80's. Sheesh.

When I looked at the title of this thread my eyes did a trick and I thought for a second that it read

"Brush cuts taxing"

I'm not a dyslexic either.

Thanks for posting.

[VegasWolf]

14. Exactly! This is just another replay of Trickle Down theory. The

trickling down was to maybe the Senior VP level.

[reprobate]

15. Most of bush's trickle down ecoonomics trickles down his leg.

[VegasWolf]

16. Yes, or on his upper lip!!n/t

[kysrsoze]

3. Fuck no, they're not.

Come on. Any economist with a shred of professional integrity knows they're not creating jobs. Moreover, the whole economy is headed for serious trouble. We've even got the networks talking about peak oil on primetime news.

[Kierkegaard]

4. "...powerful engine of employment growth..."

You mean the one that is like 1.3 million short of breaking even?

Sounds like this 'engine' needs an overhaul.

[DBoon]

11. You've forgotten all the jobs

created in India as a result of outsourcing.

You expected American jobs? You fool, who do you think Bush represents anyway.

[Kierkegaard]

12. I'd forgotten all about that!

Silly me, I thought he was our pretzel-dent.

[Paradise]

5. *'s "tax cuts" are raising state and local taxes, and a whole lot more.

One way or the other, someone's got to pay, and it ain't the rich!

[Media_Lies_Daily]

6. Sounds like a NeoCon propaganda speech...no substance.

[emulatorloo]

8. Apparently they are creating jobs at the HUMMER factory

as I see more of these "Bush Tax Cut Vehicles" on the highways around here.

However, I don't think that really qualifies as success for Voodoo economics.

[LiberalFighter]

19. They were??

Giant Hummer's sales shrink

General Motors decides to cut production on the monstrously sized vehicles, as sales diminish.
August 24, 2004: 6:14 PM EDT

[emulatorloo]

21. That makes my day EOM

[0007]

9. Never could figure out how that would work out for a typical

American that has everything anyway.

[ChrisK]

13. It seems in reading the full artical...

One gets the idea that very little "growth" is being gained for so much monies being returned to these small business.

I think whats really needed is a redefinition of what a small business is....in the article it seems its not the tax breaks thats the problem but who is classified as a small business because there the ones that will reap the reward of a tax break when there is no need for them to be listed as a small business in the first place.

The systems is in need of an overhaul to be sure who is getting the right break truly deserves them.

[Tommy_Douglas]

17. Its pretty much universal truth...

That the rich keep their tax cuts and the middle class and poor spend it.

[Carolab]

20. Right

or as * said, "everybody knows the rich don't pay taxes anyway"...

[struggle4progress]

18. kick

:kick: