I keep seeing people arguing about whether tax cuts kill or create jobs, with mouthpieces from both sides of the argument saying that making taxes go one way or the other will make jobs happen. Lots of people are pointing to this graph showing that lower taxes don’t lead to job growth. Pat Buchanan on MSNBC just now shot back with “so do tax increases create jobs?”
Wrong fucking argument. Tax cuts don’t make jobs, tax increases don’t make jobs. Tax increases increase government revenue. Making jobs is another can of beans entirely.
If you own a business, your hiring practices are not going to be based on your tax file. A small business owner who needs six guys to run his shop isn’t going to hire a seventh just because he got a tax cut. He only needs to pay six guys, why bring on a seventh? Altruism? The only way a seventh is going to come on board is if the business itself grows in such a way that necessitates extra employees, and a little tax cut isn’t going to make his business expand. The only time taxes will have a tangible effect on jobs is if you were to cut them outrageously low or spike them into the stratosphere and either choke the business into trimming down or give it so much extra money they can afford to expand.
As for the giant corporate bodies, we’ve seen what they do with extra government money. We gave them bailouts, and they turned that into… CEO bonuses and outsourcing.