Tax cuts not helping U.S. create jobs
The Arizona Republic -- Sep 30, 2010
During President Clinton's administration, a tax increase was enacted in 1993 and 22 million jobs were created.
During President Bush's administration, there were two tax cuts and only 3 million jobs created.
Now, Republicans are screaming and stamping their feet when anyone even mentions letting the Bush tax cuts expire as they are needed to create jobs.
The Bush tax cuts have been in effect for the last 10 years, so where are the jobs?
I will tell you where the jobs are. They are in China, India, Taiwan and Korea as they were outsourced to take advantage of the business-friendly trade-and-tax policies of the Bush years.
-- J. David Hinton, Phoenix
There's one citizen who know how to use Free Speech.
Do Tax Cuts Create Jobs?
Specifically the Bush Tax cuts?
The early assessment of them was not so hot:
Tax Returns: A Comprehensive Assessment of the Bush Administration's Record on Cutting Taxes
Joel Friedman and Isaac Shapiro, Center on Budget and Policy Priorities - Apr 23, 2004
Executive Summary
[...]
-- The Bush tax cuts have contributed to revenues dropping in 2004 to the lowest level as a share of the economy since 1950, and have been a major contributor to the dramatic shift from large projected budget surpluses to projected deficits as far as the eye can see.
-- The tax cuts have conferred the most benefits, by far, on the highest-income households -- those least in need of additional resources -- at a time when income already is exceptionally concentrated at the top of the income spectrum.
-- The design of these tax cuts was ill-conceived, resulting in significantly less economic stimulus than could have been accomplished for the same budgetary cost. In part because the tax cuts were not as effective as alternative measures would have been, job creation during this recovery has been notably worse than in any other recovery since the end of World War II.
If the Administration’s latest tax proposals -- which would make permanent most of the tax cuts enacted in 2001 and 2003 and establish new tax cuts on top of that -- are enacted, the long-term results are likely to be even more troubling. Over the next 10 years, total tax-cut costs will equal $3.9 trillion, reaching nearly $600 billion or 3.3 percent of the economy in 2014 alone.
Well what did the Bush Tax Cuts do to the National Deficit?
Well what did the Bush Tax Cuts do to help reach their Job Creation targets?
Clearly Tax Cuts for the rich are an exceeding poor way to boost an Economy, to create the Jobs necessary for Economic growth.
Economists agree:
Extending Bush Tax Cuts WON'T Create Jobs, Says Leading Economist
Laura Bassett, HuffingtonPost - Jul 28, 2010
As Congress debates whether to extend Bush-era tax cuts for the wealthiest Americans at least one prominent U.S. economist has already cast his negative vote.
"Not all budgetary dollars are created equal," said Alan Blinder, professor and co-director of Princeton University's Center for Economic Policy Studies, in a conference Wednesday morning. "Some have a lot of bang for the buck, and some have very little.
The GDP increase per dollar of budgetary cost is in the range of 1.6, 1.7 for things like food stamps and unemployment benefits, and in the range of .35 for extending the Bush tax cuts.
We could get some substantial job creation by simply reprogramming the $75 billion that would be saved over the next two years by not extending the upper-bracket Bush tax cuts and spending it instead on unemployment benefits, food stamps, and the like."
Hmmm? Sounds like the Bottom Up approach -- would actually work to Ceate those Jobs, according to this Princeton professor:
With a $1.70 return for every Bottom Up $1.00 invested, compared to
ONLY a $0.35 return for every Top Down $1.00 invested!
This should be a No-Brainer!
Of course that assumes a commodity, that has been in short supply of late, and one soon to get even shorter ... (must be that Supply-side Economics, again.)
HEY John Boehner and your navel-gazing GOP buddies -- If the Bush Tax Cuts were SO Great --
WHERE are those freaking JOBS !! ... (they're not over here, maybe under that chair ... ?)
Pssst! If you don't know, Mr. Speaker-Elect, perhaps you should ask Mr. J. David Hinton, of Phoenix, eh?