More Proof Republicans are wrong on Tax Cuts

[erpowers]

For years Republicans have claimed that if taxes are cut jobs will be created. Since President Obama's administration began Republicans have claimed if only President Obama would cut taxes employers would begin to hire people. Last night, the CBS Evening News showed a story that directly contradicted the Republican tax cut argument. CBS did not seem to be trying to contradict the Republican Party's argument; however the story did in fact give more proof that Republicans are wrong on tax cuts.

In the story there was an owner of a manufactering company. At the beginning of the recession he was forced to lay off hundreds of his employees. After the recession things got better and he was able to rehire some of his employees. Now his profits are much higher, but he will not be rehiring all of his former workers. Although he will have millions of dollars to spend he will not be using most of that money to hire workers. The money will be used for technology upgrades. CBS went on to point out that many companies have been spending more money on technology upgrades than on hiring. According to a study mentioned in the story companies have been spending on technology upgrades by about 25% while only increasing spending on people by about 4%.

This information proves that tax cuts are not needed to increase hiring. Employers have money that they can spend on hiring more employees. They have been choosing to spend their money on technology instead of people.

http://www.cbsnews.com/video/watch/?id=7374087n&tag=contentMain;contentBody

[postulater]

1. Robots are way easier to punish than those pesky union thugs. nt