How will cutting taxes for the wealthy create jobs?
Those with greater earning power can already afford the cost of living, so they generally look for returns on investment instead of spending on goods (because they generally own the goods already). It is NOT my understanding that these returns typically come from investing in small businesses. Instead, they come from investing with the help of professional investment people (stock brokers, etc). These folks are always looking for higher return rates. Higher return rates come from companies that lower their labor costs. Companies lower their labor costs by downsizing and off-shoring their jobs. (i.e. resulting in less jobs)" Now it's all just speculating and not saying ALL the wealthy invest their extra cash in stock brokers. Who knows, maybe they'll buy that 5th yacht instead. And besides this, our government needs to make up the deficit. This was typically done by raising taxes on payroll, social security, and gasoline. So the wealthy will pay these taxes anyway, but it is also hurting lower income families. The ones who need the money to buy the goods they weren't able to afford before. But this is how I understand our economy and would like to hear counter explanations @Dan - If you would of read my question, you would of seen that I'm open and asked for counter opinions. Its not the way it is because you say so. If you have such a strong understanding of how this all works, then I assume you cracked the puzzle and just rolling in dough. If not, then why not implement what you know and become a millionaire?
Asked By: Dave - 5/20/2011
Best Answer - Chosen by Asker
Your understanding of economics and business is typical of a liberal. A vast majority of the top earners in the U.S. are entrepreneurs, and by lowering their taxes allows them to do business easier, thus increasing production and jobs. Consumer Reports shows that consumer demand is on par with 2005 levels when we had 4... More
Answered By: Constitution Hawk - 5/20/2011
Additional Answers (8)
It doesn't, and it hasn't. After TWO tax cuts to the rich, Bush had the WORST job creation record of ANY modern full-term president. Read the Wall Street Journal: http://blogs.wsj.com/economics/2009/01/09/bush-on-jobs-the-worst-track-record-on-record/
Answered By: Reality has a Liberal bias - 5/20/2011
It won't. That another Republican bald-faced lie. And even the most basic analysis shows the tax cuts for what they were... More
Answered By: Ken - 5/20/2011
They will hire people to stand around even if there is no consumer demand increase.
Answered By: Growth vs Oil - 5/20/2011
It did not work when Ronnie was in the white house It did not work when Daddy was in the white house It did not work when the incompetent one (bush) was in the white house Why on earth would ANY one think(?) it will now?
Answered By: Nancy - 5/20/2011
ok let me simplify for you... More
Answered By: Dan - 5/20/2011
Higher return rates are not generated exclusively at the expense of labor costs. It would appear that either your knowledge or view of how businesses increase profits are either very limited or biased.
Answered By: bkc99xx - 5/20/2011
it never has in the past... More
Answered By: nostradamus02012 - 5/20/2011
Companies make a profit (which is where the investor's return comes from) by optimizing the labor costs, not by lowering them. Optimizing means getting the most production for the least amount of money. If they just wanted to lower them, they'd fire everyone, which is not the road to profitability... More
Answered By: Frank - 5/20/2011
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