9 Things the Rich don't want you to know about taxes

[Pryderi]

For three decades we have conducted a massive economic experiment, testing a theory known as supply-side economics. The theory goes like this: Lower tax rates will encourage more investment, which in turn will mean more jobs and greater prosperity—so much so that tax revenues will go up, despite lower rates. The late Milton Friedman, the libertarian economist who wanted to shut down public parks because he considered them socialism, promoted this strategy. Ronald Reagan embraced Friedman’s ideas and made them into policy when he was elected president in 1980.

For the past decade, we have doubled down on this theory of supply-side economics with the tax cuts sponsored by President George W. Bush in 2001 and 2003, which President Obama has agreed to continue for two years.

You would think that whether this grand experiment worked would be settled after three decades. You would think the practitioners of the dismal science of economics would look at their demand curves and the data on incomes and taxes and pronounce a verdict, the way Galileo and Copernicus did when they showed that geocentrism was a fantasy because Earth revolves around the sun (known as heliocentrism). But economics is not like that. It is not like physics with its laws and arithmetic with its absolute values.

Tax policy is something the framers left to politics. And in politics, the facts often matter less than who has the biggest bullhorn.

http://www.wweek.com/portland/article-17350-9_things_the_rich_dont_want_you_to_know_about_taxes.html

[WatsonT]

1. If only we'd had a historic election of a president and congress

that promised to Change such things. Well we can Hope.

[Poboy]

4. If only! If only we had the house, senate, and presidency, and the

overwhelming popular will of the people.

Fucking worthless POS.

[Blue_Tires]

2. bookmarked

[Dappleganger]

3. One myth is that with the tax savings the wealthy receive, they create new jobs.

These days they reinvest it in the Wall Street Casino as the payout is better than reinvesting in growing their business. In their businesses, they are holding onto cash, continuing to drive down salaries and benefits as they are addicted to money like crack. Loyalty is no longer rewarded in the business sector as greed has completely taken over. When the president's plans for banks to increase lending were rolled out, the hope was that it would encourage them to hire more people and expand. Instead they went after the cash like a pack of blood-thirsty wolves while the rest of us were left to beg for their leftover scraps.

[WatsonT]

6. Tax benefits should go to companies

who create good paying jobs, in the US.

Incentivize investing in the company and job creation. De-incentize sitting on the money, outsourcing, and raising CEO pay.

Make it so that those companies that hire and invest are more competitive than those who do not.

[JuniperLea]

10. No President or CEO worth their salt will hire more people...

Until there's a demand for goods and services, regardless of the tax incentive.

[WatsonT]

12. Hence the need for a multi-factorial solution

I was in no way suggesting that as the entirety of my thoughts on the subject.

Also one can hire without hiring here. Or one can hire, but at minimum wage.

It might not force companies to hire against their will, but it might persuade them to keep a few more jobs here, and pay a little extra to get better workers.

[JuniperLea]

13. And keep someone on payroll...

After getting that tax break...

I think the tax breaks are good, but they need to have more hooks... like being given after a new hire has been employed for a year.

[zeos3]

5. Excellent article!

Thanks for posting this.

[HughBeaumont]

7. K & R. EVERY American should read "Perfectly Legal" and "Free Lunch" . . .

. . . so they'd know how badly this nation and its people are being screwed.

[CrispyQ]

8. Ditto.

Excellent books. My library has both.

[JuniperLea]

9. Demand is tried and true...

there will be no job growth until there is a demand for goods and services.

[whattheidonot]

11. corporations whine

Corporations whine for tax cuts saying they will produce more jobs. Studies show that the jobs created do not justify the amount of the tax cuts. Fewer jobs are created than the tax cut would presume. Investments are not made. People are not hired at a rate that makes sense. There is little correlation between the two. Surprise, Surprise. Take the money and run. Investment is made in machinery that cuts jobs. With the machines doing the work where do the workers go?

[reformist2]

14. It's a bit much to convince people the last 30 years were a mistake.

Better to argue that Bush took Reaganism too far. In any case, if we attack the last 30 years, we open yourselves up to the charge that we want to go back to the days of Carter, out-of-control inflation and double-digit interest rates.

[leftstreet]

15. K&R

[midnight]

16. 2004 jobs creation bill actually lost the U.S. 100,000 jobs, and it's gearing up to do it again but

only with ten times as much job loss.... So the jobs creation bill is just another name for the rich don't have to pay their fair share....