Tax Cuts Create Jobs

[John Galt]

What we need, is a tax cut that will stimulate the economy.

How many times have we heard that from the deluded right wing?

I've decided that I'm finally prepared to admit that they might be right.


Recently, I've heard some republicans channeling Pres. Kennedy as the all knowing democrat who knew what Raygun knew....tax cuts create jobs.


What I'd like to see, is a tax cut that does just that. We've seen that giving millionaires tax holidays, does absolutely nothing to create jobs.

What if we did something that worked once before? The Kennedy tax cuts.

Why not reduce withholding tax on everyone that makes less than $100,000.00/yr, by 10% or 15%?

This, from the current 15-28 some odd percent?

Those who make around $50,000.00/yr would pay about +/-5%.

Those who make around $100,000.00 would pay about +/-15%.

Could you imagine how far an extra $10,000.00-$15,000.00 per year in the pockets of the middle class would go toward creating an economic stimulus?

When the middle class spends, it increases profits for the gazillionaires.

Theoretically, it would work out great for everyone.


Wanna bet the republicans never consider such a thing?
__________________

[Dale escondido]

What we need, is a tax cut that will stimulate the economy.

How many times have we heard that from the deluded right wing?

I've decided that I'm finally prepared to admit that they might be right.


Recently, I've heard some republicans channeling Pres. Kennedy as the all knowing democrat who knew what Raygun knew....tax cuts create jobs.


What I'd like to see, is a tax cut that does just that. We've seen that giving millionaires tax holidays, does absolutely nothing to create jobs.

What if we did something that worked once before? The Kennedy tax cuts.

Why not reduce withholding tax on everyone that makes less than $100,000.00/yr, by 10% or 15%?

This, from the current 15-28 some odd percent?

Those who make around $50,000.00/yr would pay about +/-5%.

Those who make around $100,000.00 would pay about +/-15%.

Could you imagine how far an extra $10,000.00-$15,000.00 per year in the pockets of the middle class would go toward creating an economic stimulus?

When the middle class spends, it increases profits for the gazillionaires.

Theoretically, it would work out great for everyone.


Wanna bet the republicans never consider such a thing?
__________________

We need new ideas on this for sure.
I agree trying new approaches is an intelligent choice.
Don't be discouraged by set backs, just don't be married to a program that isn't working.
We really need incentives for jobs to return.
We also need to accept the concept that even if a program works the reults will be very small and hard to measure.
Truth is we are in an adjustment mode and the status quo will never be exactly the same as before.

[nondual]

What we need, is a tax cut that will stimulate the economy.

How many times have we heard that from the deluded right wing?

I've decided that I'm finally prepared to admit that they might be right.


Recently, I've heard some republicans channeling Pres. Kennedy as the all knowing democrat who knew what Raygun knew....tax cuts create jobs.


What I'd like to see, is a tax cut that does just that. We've seen that giving millionaires tax holidays, does absolutely nothing to create jobs.

What if we did something that worked once before? The Kennedy tax cuts.

Why not reduce withholding tax on everyone that makes less than $100,000.00/yr, by 10% or 15%?

This, from the current 15-28 some odd percent?

Those who make around $50,000.00/yr would pay about +/-5%.

Those who make around $100,000.00 would pay about +/-15%.

Could you imagine how far an extra $10,000.00-$15,000.00 per year in the pockets of the middle class would go toward creating an economic stimulus?

When the middle class spends, it increases profits for the gazillionaires.

Theoretically, it would work out great for everyone.


Wanna bet the republicans never consider such a thing?
__________________
I hope Obama's economic team is listening. This is a great Idea! And you did a great job at explaining it. :thumbsup:

[John Galt]

We need new ideas on this for sure.
I agree trying new approaches is an intelligent choice.
Don't be discouraged by set backs, just don't be married to a program that isn't working.
We really need incentives for jobs to return.
We also need to accept the concept that even if a program works the reults will be very small and hard to measure.
Truth is we are in an adjustment mode and the status quo will never be exactly the same as before.
Nobody consumes as much as the middle class.

For too many years, we've heard that if we give the top 2% of the earners in this country huge tax incentives, they will invest it in new businesses.

True...they do that. They just don't do it in this country.

If we truly want to stimulate the economy, we need to put the money in the demand side of the economy...not the supply side.


By doing this, the wealthy business owners make out just as well as the consumers.



The down side for politicians....it won't stimulate big corporations, to invest in campaign donations

[MintJulep]

Gee, that should do a lot to create jobs. I'm sure in this economy people are going to go right out and blow every extra cent they get their hands on.

Not.

[John Galt]

Gee, that should do a lot to create jobs. I'm sure in this economy people are going to go right out and blow every extra cent they get their hands on.

Not.
So you don't think that tax cuts create jobs?


http://www.dcjunkies.com/showpost.php?p=228053&postcount=1

[MintJulep]

So you don't think that tax cuts create jobs?


http://www.dcjunkies.com/showpost.php?p=228053&postcount=1The middle class doesn't create jobs, who you are proposing to give tax cuts to.

In good times, sure people would go out and spend extra money. Now? Those with any sense know to hold onto every extra dime they have, not blow it.

[John Galt]

The middle class doesn't create jobs, who you are proposing to give tax cuts to.

In good times, sure people would go out and spend extra money. Now? Those with any sense know to hold onto every extra dime they have, not blow it.
Bush gave families a one time check for $600.00, while giving the wealthy hundreds of thousands of dollars.


The middle class does indeed create jobs. Moreso than the supposed investors.

When the middle class purchases goods/services, they stimulate the economy. When the economy moves forward, companies hire employees.


Even you can't deny that. Nobody is investing in new businesses. They make more money screwing the middle class in the stock market.

[nondual]

The middle class doesn't create jobs, who you are proposing to give tax cuts to.

In good times, sure people would go out and spend extra money. Now? Those with any sense know to hold onto every extra dime they have, not blow it.
The middle class always NEEDS to spend. I just did a set of front brakes, a radiator and a wheel alignment. And my TV just went, I need a new TV. See? We always have needs, but if we have no money, we have to go by without them. Not that complicated. :dunno:

[MintJulep]

Bush gave families a one time check for $600.00, while giving the wealthy hundreds of thousands of dollars.


The middle class does indeed create jobs. Moreso than the supposed investors.

When the middle class purchases goods/services, they stimulate the economy. When the economy moves forward, companies hire employees.


Even you can't deny that. Nobody is investing in new businesses. They make more money screwing the middle class in the stock market.When things as uncertain as they are now, people tend to hold on to extra money they don't have to spend or spend it on paying bills down. They will spend on the absolute necessities, but not much more. That's why the last two Christmases had some of the lowest retail sales ever. Consumer confidence and spending are currently at record lows.

[Moby]

The middle class doesn't create jobs, who you are proposing to give tax cuts to.
They don't? You mean that it wasn't the middle class purchasing homes between 2002 - 2006 that fueled the economy? So it was just rich people building homes without any concern if people purchased them?

Customers create jobs.

This entire thought process that rich people will just build a manufacturing plant to create jobs without having a market just doesn't make sense.

When there is a demand for products and services, jobs are created. If rich people don't create them then someone else will.

As we've seen, investors kept building homes but once the middle class stopped buying, what happened?

Either the middle class in America creates demand or we need an over seas market. Jobs are not just magically created out of charity.

[MintJulep]

They don't? You mean that it wasn't the middle class purchasing homes between 2002 - 2006 that fueled the economy? So it was just rich people building homes without any concern if people purchased them?

Customers create jobs.

This entire thought process that rich people will just build a manufacturing plant to create jobs without having a market just doesn't make sense.

When there is a demand for products and services, jobs are created. If rich people don't create them then someone else will.

As we've seen, investors kept building homes but once the middle class stopped buying, what happened?

Either the middle class in America creates demand or we need an over seas market. Jobs are not just magically created out of charity.I think we are really screwed. Too many people unemployed, the rest hanging onto every cent due to the (fully justified) fear of the future.

What a FUBAR mess.

[SortofLiberal]

What we need, is a tax cut that will stimulate the economy.

How many times have we heard that from the deluded right wing?

I've decided that I'm finally prepared to admit that they might be right.


Recently, I've heard some republicans channeling Pres. Kennedy as the all knowing democrat who knew what Raygun knew....tax cuts create jobs.


What I'd like to see, is a tax cut that does just that. We've seen that giving millionaires tax holidays, does absolutely nothing to create jobs.

What if we did something that worked once before? The Kennedy tax cuts.

Why not reduce withholding tax on everyone that makes less than $100,000.00/yr, by 10% or 15%?

This, from the current 15-28 some odd percent?

Those who make around $50,000.00/yr would pay about +/-5%.

Those who make around $100,000.00 would pay about +/-15%.

Could you imagine how far an extra $10,000.00-$15,000.00 per year in the pockets of the middle class would go toward creating an economic stimulus?

When the middle class spends, it increases profits for the gazillionaires.

Theoretically, it would work out great for everyone.


Wanna bet the republicans never consider such a thing?
__________________


John,

The major problem with the way REPUBLICANS want to cut taxes is that they want to just cut taxes for the rich and hope they will do something to create jobs. It is the same way they viewed corporate bailouts . . . just hand over a big check and TRUST those that had screwed everything up to get it right this time. If we have learned nothing else over the past ten years, I would say that we should have learned that giving the rich tax cuts does NOT create jobs.

I agree, tax cuts can be used to stimulate the economy, but it would need to be done like Clinton did . . . bring those in the corporate world together with the areas with the highest unemployment and negotiate deals where the towns or counties wave taxes for a few years to get the company to come in. The towns/counties would still see revenue in the money collected from people's paychecks and money spent in the stores in their towns, so it is a win/win for both the corporations and the towns/counties.

I agree with you about using tax cuts to get money into the hands of those that will get it out into the stores which is the true trickle down theory. Give a rich person extra money and it doesn't change anything about what they spend because they already have more than they can spend. Give a person living paycheck to paycheck extra money and you can rest assured it will be spent on things they need which will help each store that the money is spent in. Personally, I don't think the banks need that extra money the rich stash away under the Bush tax cuts, but I am sure the communities around the country need that extra revenue if we got more money back to the working families.

Just as when people stop spending we end up with higher unemployment, you get the people back to spending and you end up with more people working. A lot of our problem is the perception that we are going back into a recession. Tell people that often enough and it will become fact.

[Moby]

I do NOT believe that tax cuts create enough jobs to support the deficit that comes with them.

We've had 4 major tax cuts in the past 30 years and 2 tax increases.

2 times the economy improved during a time of tax cuts but those also coincided with massive cuts in interest rates.

2 times the economy did NOT improved during tax cuts and those did not come with massive cuts in interest rates.

We've also seen huge improvements in the economy when we've raised taxes to match budget expenditures.

All 4 tax cuts were followed by huge budget deficits.

Never have tax cuts improved anything without massive interest rate cuts.

In 2000 a family making $100,000 was paying 28% in taxes. In 2003 they were paying 25%. That's an extra $3,000 or $250 a month.

In 2000 interest rates were hovering around 6% and in 2003 interest rates were hovering around 1%. Mortgages went from 8.5% to 5.5% or lowering the cost of a mortgage payment on a $250,000 home from $1,900 to $1,400. A savings of $500 or twice as much as the monthly take.

What do you think is going to entice buyers more?

One always leads to massive annual deficits. One doesn't.

The problem is that interest rates were too low for too long and too many people borrowed money. Now we can't lower them any more.

[Dale escondido]

Even if we put more monies in the hands of the consumer they will be cautious about spending.
That is just the state of things now.
But that doesn't mean we shouldn't start thinking of solutions.
I know nobody wants to hear this now, but we will have to adjust our thinking on how we measure our lives and success.
Ultra consumption and the using up of the planet are going to constantly be tested with price increases as incomes fall.
And decreasing product quality to a level to attract purcharers of items that are purched over and over IS a price increase.

[John Galt]

Rest assured....we will see the Bush tax giveaway to the wealthy extended.

Just wait and see.

As long as we're going to see an unfunded tax cut, I'd rather they subscribe to my plan.

At least it will stimulate the economy, instead of stimulating wealthy people to fund bogus campaigns for those who promise a tax entitlement.

When the economy is moving, the wealthy make money.

If companies across the nation see profits, then the old fashioned Wall St. methods begin to work once again.

Jobs are created, and if need be, we can have incremental withholding increases as time passes.


Of course, we need to cut wasteful military spending, and social programs.

When jobs are available, we can wean people off of the govt. teat.

[CosmicRocker]

Good idea. John.

we need to really put some cash DIRECTLY into the middle class - not a 1 time $600 check.

Since comsumer spendinf is 60% of GDP, pumping money into those hands who have delayed purchases ( I know I have) because of the job/housing/business climate uncertainity - or just not having any money except for the bare necccesitiess would really "stimulate" GDP.

Above ALL ELSE we need robust GDP growth.