Skip to main content

When it comes to tax increases, you've heard the refrain.  Repubs say "you can't tax the job-creators (TM)."  We all know that's bogus and that the jobs problem is lack of demand, not fear of higher taxes, but somehow the refrain seems to be accepted and gets no push-back from the media talking heads.

The repubs have successfully framed anything the Dems recommend as "job-killing"--job-killing tax increases, job-killing regulation, job killing environmental concerns.  And this frame is probably working for them.  The public sees no jobs, so the refrain sounds plausible--after all, something is killing the jobs.

Something is killing the jobs.  It's spending cuts. And if a debt ceiling deal brings draconian cuts while the economy is fragile, it will be job-killing on steroids.

None other than BusinessWeek has recognized this in their current issue.  More below the fold.

It's just one paragraph in a much longer article, but I hope other media will catch on to this concept.  Spending cuts will certainly kill more jobs than any tax increases will.

Republicans in Congress, not wanting to appear to defend the rich, have attempted to block any deal that includes higher taxes on the grounds that tax hikes are “job-killing.” But experience shows that in a period of slack demand like the present, tax hikes are no more job-killing than spending cuts, and probably less so. Cutting spending—say, by firing federal employees or canceling procurement—removes demand from the economy dollar-for-dollar. A dollar tax hike, on the other hand, especially one aimed at upper incomes, cuts demand by less than a dollar. Those who pay the tax cover part of it from their savings and only part by reducing their spending.

Democratic spokespersons need to start framing these repub spending cuts that way--job killing spending cuts!

If lawmakers insist on using the phrase “job-killing,” Roberton Williams, a senior fellow at the Brookings Institution-Urban Institute Tax Policy Center, wrote in a recent blog post, “they should apply it equally to both tax increases and spending cuts.”

Roberton Williams is naive if he thinks any lawmaker will use "job-killing" for both tax increases and for spending cuts.  But I'd love to see Dem spokespersons turn the repubs' rhetoric back on them and plant in the mediasphere "job killing spending cuts."

Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags


More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site