Tax cuts for the rich don’t create jobs – period

Posted on by

Thought this article on truthout actually tells the truth about the myth that tax cuts for the rich create jobs. It says it right off the top: “Let’s cut the baloney about jobs and rich people’s taxes. If corporate profits automatically turned into jobs for the little folk, the unemployment rate would be plummeting.”

That is what I ask all my friends in love with keeping the Bush tax cuts for the rich. If the tax cuts are so necessary to create jobs then where are all the jobs that were created during the time the tax cut has been on the books?

Companies don’t create jobs because they have extra money jingling in their pockets. They take on new workers when they want to expand, and right now the demand’s not there to warrant that growth. Corporations are in the business of maximizing profits for the benefit of their managers and shareholders. They’re not in the business of creating jobs, nor should we expect them to be.

And so how should we respond to Republican claims that restoring Clinton-era income tax rates for the wealthiest 2 percent would destroy jobs? We shouldn’t. They are irrelevant.

An employment policy based on further enriching the richest Americans — who may or may not spend their wealth on job-creating ventures — is like trying to feed chickens in the barnyard by dropping feed from an airplane. It’s far more logical to focus tax cuts on activities that are likely to expand American business.

The Rich Are Not Going to Give Us Jobs


Comments for this post are closed. If you wish to send a note to the editor, visit our contact form