Can someone explain to me how tax cuts "create jobs"?
I'm a business owner, and I know lots of business owners, and whether or not we hire new people is a function of how well the business is doing.
If business is growing and we need more workers to meet the needs of our business, we hire people. If business is contracting and we need less workers, we lay people off. The tax rate we pay on the profit our business makes has no bearing on how many employees we need to run our business. An astute business person is going to run an efficient operation and keep their labor costs as low as possible.
If the government cuts my taxes, that increases my take home pay, but it doesn't mean I'm going to create a make work job because of that. That wouldn't make any sense. Also, employees are paid with pre-tax dollars anyways, so it's not like lower taxes makes it cheaper for me to hire people.
As for the capital gains tax argument.....the one that says lower capital gains taxes encourages investment, encourages businesses to expand, etc......capital gains taxes are paid when you sell an investment, not when you make one. So lowering the capital gains tax rate encourages people to sell their investments, not to make new ones.
Taxes may be low today when I make an investment, but I have no idea what the rate will be when my investment has run it's course and it's time for me to sell, so a low rate today doesn't encourage people to make investments.
If anything lower capital gains tax rates depress asset values because it floods the marketplace with more sellers than would otherwise be there.
Besides, if you invest your money in stocks, bonds, your own business, someone else's business, real estate, or a savings account at a credit union.....you're going to pay capital gains tax on the return......so at the end of the day, capital is going to go where it will earn the highest return, regardless of the tax rate.
So I'll end this post where I started it, can someone explain to me how cutting capital gains taxes or cutting the top marginal tax rate "creates jobs"?
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