Republicans constantly make the claim that you can't raise taxes on the wealty because they are the job creators. Ask any businessperson if they ever hired anyone because he got a personal tax cut, and if they are honest, they will say "never".
I asked my Representative, John Yarmouth (D), this question during a local radio call in and his reply was: "I am a businessman, my father was a businessman, my brother and sister are businesspeople and I can tell you that none of us has ever hired an employee because we got a personal tax cut."
I made the point that in fact the opposite is true. If the Federal Govt. says they are going to raise taxes on the wealthy, the wealthy get very creative with ways to avoid sending any of their income to the govt. The first thing a businessperson in that position will do is develop a strategy with their accountant that will optomize their income and minimize their taxes. The accountant will help them to determine the optimum income and it may require that they pay themselves less. The income that would have gone to the govt. in the form of taxes will now stay in their business. In order to avoid paying corporate taxes on that money, they will find ways within the tax code to shelter it and they will begin to spend it on the business. They can upgrade their equiptment, buy a new vehicle, expand their facility, or here is a novel idea...give your employees a bonus.
All of these strategies put money back into circulation and that will create demand and that will create jobs. Demand creates jobs, not tax cuts. If the govt. sets the tax rate too low on the top 1% it creates a disincentive to do anything but hoard it. That is the least risky thing to do. Money has to be circulated in order to drive an economy, and the millions of consumers that make up the middle class have to have enough buying power to purchase large durable good items like houses, cars and appliances. That is what drives an economy.
A tax cut for the wealthy will create a small economic bubble around that individual, and there aren't enough 1%ers to drive an economy, but they do sit on enough assets to drive an economy. As long as the gov't. makes it easier for the wealthy to do nothing with their money they will just continue to accumulate it.
