Surprise! Surprise! Tax cut doesn't spur investments

[ikojo]

This is from the e mail edition of the St Louis Business Journal. Weren't we told that tax cuts for the wealthy would spur investments and create jobs thus jump starting the economy?

When their own press reports this then you know the news is worse than this.

http://www.bizjournals.com/stlouis/moneycenter/story.html?id=1786&jst=m_mc_hl

A monthly index of small business economic indicators fell in July due to a 10 percentage-point drop in the number of business owners who expect the economy to improve over the next six months.

"There is no indication that the tax bill has encouraged owners to make additional capital outlays this year in spite of the ballyhoo on the benefits for small firms (of which there are many)," Dunkelberg reports.

[ayeshahaqqiqa]

1. Of course not

The rich people don't own small businesses. They own huge corporations, and they have no intention of investing money in a country whose financial future is shaky. I'm sure they've safely deposited their funds in overseas bank accounts, just like I was sure they would do all along.

PS-I'm using my huge tax break of about a hundred fifty bucks to support Democratic candidates!

[Racenut20]

2. yep! me too

Soon as my estimated $50.00 "trickles down" to me, it will go to the Democrats. OH, Did I forget my son's college tuition went up 28% or something like that. Too mind boggling to think about.

[eyesroll]

3. Welcome to DU, Racenut!

We got that first $600 W. "refund check."
(Didn't get the last one because we don't have kids.)
In the meantime, our health insurance went up, our homeowner's insurance went up, our property taxes went up, gas and heating prices went up, our 401Ks went down, my husband doesn't know if his job will be sent to India next month, but, hey! We got $600.
God bless W.

[bushh8ter]

5. All of the above

plus car insurance up 15% and daycare up 30% - paycheck up 0% but hey at least I got an extra 14 dollars a month rolling in oh goody!

[MissMillie]

11. looking back through all top-heavy tax cuts

It's all the wealthy every do.... they do not increase consumption, they do not invest in this country. They always put their money elsewhere. It's why top-heavy tax cuts have NEVER spurred the economy.

[sendero]

4. it is really funny...

... to watch idiots try to stimulate the economy from the supply side when the problem is on the demand side.

Of course, chances are the Bush* cabal knew/knows full well their tax cuts would/will not be stimulative. They don't give a rat's ass about the economy, save that it hurts their re-election chances.

[uptohere]

6. then why are the markets continuing to rise ?

despite the thoughts that things were due to cool off ?

I don't think your examples tell much of the tale.

[zeemike]

8. There is no shortage of capital

That is obvious from looking at interest rates that are at a historic low. There is a lot of capital out there looking for a profit.
The stock market remains high because of the hope that Bush will finely get congress to dump huge amounts of the Social Security money in to the market to prop up their investments.
What the rich are doing with their big tax cuts is using it to by up smaller business to make their corporation even bigger just like what happened during the Reagan administration. And of course some of it will be kicked back to the Repugs to insure another one in the future.

[moondust]

7. It's busy propping up the stock market.

And building job factories in China.

[ikojo]

9. Even Mexican labor costs too much for American

corporations. There is an article in today's New York Times about companies moving their manufacturing plants from low-wage Mexican maquiladoras to even lower wage Chinese plants.

Pretty bad when Mexico is viewed as a high-wage country.

[moondust]

10. I saw that.

Unbelieveable! Can out-and-out slavery be too far off?