Federal tax reform is on the agenda for Congress again, and that means another round of the tried and true Republican goal of tax cuts for the rich (which never really works to help the economy).The problem is that jobs are created when the current workforce of a company can't keep up with sales and operation of the business. Tax cuts are not what creates jobs.
Hiring employees you don't need is bad business. A smart manager wouldn't do this, because it increases expenses while not increasing profits.
Tax cuts mean more dividends or direct income for the investors, meaning more money for their lifestyles, and/or to invest in the stock of still more businesses.
If you really want to stimulate the economy, the way to do it is to increase middle and lower class consumer spending. Stimulating local spending percolates money up to the top of the economy as increased sales, in turn making more money for the rich AND requiring more jobs to fulfill demand. How do you do this?
- Increase minimum wage
- Reduce student loan debt
- Control against inflation
- Don't do stupid stuff that reduces consumer confidence
- There are plenty of other things, too.
(Let me note, by the way, that once a business HAS decided to expand, tax INCENTIVES are a great way to recruit new business to YOUR community, such as tax increment districts in which the company pays reduced taxes for a certain number of years, while their facility ramps up productivity. But that is different from "tax cuts for the rich.")We have known for weeks that corporate tax cuts were on the conservative agenda for this winter, seeking more profits for owners and investors. It's certain rich people who push this through large campaign contributions and lobbying, like the Koch brothers, because it means more money in THEIR pockets.
Don't believe the rhetoric that if you are a conservative/Republican/patriot you MUST support tax cuts for the rich. It doesn't stand up to critical thinking and doesn't benefit the economy much.
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