Can someone explain to me how tax cuts "create jobs"?

Wow, and since taxes under Bush were lower than at any time since before the Great Depression, we should have a booming economy and virtually zero unemployment right now.

Also, FWIW, the depreciation acceleration is a tax deferment, not a cut.

When things BOOM again, they'll say it was because of Bush's policies. You know it, I know it, they know it, everyone knows it.



I mean, I'm all for a break on a truck that I use for business, but ONLY if it's like a delivery van.. the loopholes before (maybe still) would allow you to buy a Hummer, use it to drive 1 paycheck to the bank once a month and qualify it as a business truck with the associated tax break.

less taxes=more circulation of money....simple which equals more jobs

And you're being too quick to respond, just like 80% of the other people here who read the thread title but apparently didn't read any of my initial post....or any of my other posts in this thread for that matter.

I've already conceded that tax cuts for lower and middle class people are stimulative because they have a 100% propensity to spend.
This conversation was meant to be about capital gains tax cuts and tax cuts for small business owners creating jobs. (you would know that if you read my first post)

I guess I should have counted on the hit and run people trying to get their post counts up without having to actually engage in thoughtful conversation, and titled the thread accordingly.

It makes the same amount of sense that relying on bank loans to stay in business does.

The government cuts taxes, so people have more money to buy shit made in China, the Chinese factories then have to get more workers to make the shit people want to buy. The Chinese government then buys US Treasury bonds, giving the money back to the US government, which then wastes it in Iraq and Afghanistan (as well as propping up Israel, Egypt and Columbia).

Economics 101

Cutting your taxes (via payroll taxes or fed tax rate) is essentially cutting your expenses. This means your business would be doing better. This is more money that you can invest in growing your business. Maybe it means you don't lay off people that you were going to because you now have additional working capital. That, in a simple nutshell, is that lowering taxes does.

Exactly! I agree 100%...and yes I read all of the orignal post....and all of the other emotional posts this week - thanks!

simple macro economics
the act of lower taxes increase the money supply in the economy.
it doesn't matter if the money supply is spent or saved it still directly in the economy.
Capital gains is targetted because it provides the secondary effect of spuring investment which allows companies to get financing without having to borrow the money.

the end result is that there is more money in the banks (which means lighter lending requirements which minimized the credit crush the current failures is causing)

if it is spent shemp already cover that point.

if it is invested then companies can shift debt based (which is hindered currently) to equity based capital, which allows them to maintain or expand their business. Which protects jobs /creates jobs.

that and the fact that whenever taxes are raised on the rich (boat tax) it results in people not purchasing that luxuary and putting the people who make that stuff out of work. The assumption is that if you do the reverse, it will have the opposite effect. Convincing people to risk their money in the stock market, needs some sort of external insentive and that is what a capital gains tax cut does.

The "trickle down" theory is bullshit and never has worked. Because a guy saves $10 million in taxes doesn't mean he'll go out and spend $10 million on a boat. Rich people stay rich because they are smart with their money, not because they throw it around like rappers. Sure a small portion of their savings will make it back into the economy, but a much smaller portion than just injecting it directly into the middle and lower class.

You're a persistent little pissant aren't you?


<rolling eyes>
Yes, you're right, the banking system shouldn't even exist and a really smart business owner should never need to use debt as an instrument of business.

If a contractor wants to build a neighborhood full of spec houses, he should have $10MM cash on hand to do it with...to buy the materials, pay all the laborers, and get all the permits and equipment necessary.
He should be able to front all of this out of pocket until he can sell the houses and make his profit. If he has to use a bank for any of this he must be a failure. It's ridiculous to think that a guy like this could constantly have debt on his books and yet still make a profit.

If someone wants to open a car dealership, they should have millions on hand to buy their inventory with before they open. If they have to use a floorplan from a bank, where they pay the interest on the inventory until it's sold, they must be stupid and a complete failure at business.
How dare someone try to open a car dealership without first having millions of dollars in cash on hand?

I'll tell you something else too, that fucking idiot Bill Gates should have never taken out a loan to buy that computer he and Allen wrote their first operating system on. What kind of stupid businessman would do that? There's no way that guy would ever amount to anything. If he didn't have enough cash on hand to start the business, then he shouldn't have started it.

</rolling eyes>

So if the government spends the money as opposed to individuals, then the money is no longer in the economy?

A few things one the highest tax increases in this country during peacetime was during Reagan.
http://www.nationalreview.com/nrof_b...0310290853.asp (national review not a liberal publication)
During W taxes were cut wealth grew and wages flat lined and unemployment has been steadily growing. Including the number that just gave up looking or those who could only find part time work but are now considered employed.
If putting a little extra money in peoples pockets makes them spend then the tax rebates should of bought a boom to consumer spending and it didnt. Because people are putting it in the bank or paying a bill.
Also over 50 percent of us companies dont pay income taxes. so you could lower the tax to zero and it wont mean shit.
My father worked for one of the largest health insurance companies in the world. They were constantly laying people off and putting more and more work on the people left. At the same time they were having banner quarters and the chairman gave himself almost a half a billion dollar bonus. so lowering taxes will create jobs because the companies will have more money is a myth.
People forget the government puts 200 million dollars to condoms that creates and keeps jobs. Someone has to give them out,someone has to supply them.Those people go out to lunch,shop at walmart. Same with fixing up the mall those people working spend and then it effects others. Or they build a road or give states money to keep cops working. Then the donuts guy doesnt have to lay people off because less cops are coming in for donuts and so on and so on.

Stop trolling my posts you obsessed, psychotic piss ant.

wow, i was trying to be sarcastic .... i should have said Walmart Greeter, instead of walmart check out...