Are tax cuts the right tool to create jobs?

Despite revenue shortfalls, both the state and federal officials are proposing business tax cuts to create jobs.

In Georgia, legislation sponsored by Rep. Tom Graves (R-Ranger) would give a $2,400 tax credit to any company that hires and employs for 24 months someone who has been out of work at least four weeks, AJC staffer Nancy Badertscher reports.

The legislation also calls for creation of a $10 million pool of money that would be doled out annually to so-called “angel investors” who are willing to help finance small and start-up businesses with 20 or fewer employees.

In Washington, meanwhile, President Obama is pushing a proposal that would give companies a $5,000 tax credit for each new worker they hire in 2010, Associated Press reports. Businesses that increase wages or hours for their existing workers in 2010 would be reimbursed for the extra Social Security payroll taxes they would pay.

With double-digit unemployment, tax cuts to create jobs are understandable. But there are also huge holes in government budgets.

Do you support or oppose these ideas? Why?

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37 comments Add your comment

TnGelding

January 29th, 2010
7:32 am

They need customers and clients, not tax cuts. The recession was engineered by big business laying off productive workers to bolster the already fat bottom line. Bill Gates alone could pay every Microsoft employee for all eternity. Why did they join the panic? They don’t even save any money when you consider the severance pay and cost of rehiring. The American family is probably going to have to adjust by going back to someone staying home to care for the house, pets and children, and that’s a good thing. Thrift is the new name of the game, not consumption.

Greg Jones

January 29th, 2010
9:31 am

Why would I hire someone I can`t use , just trying to stay afoat. 2400.00 tax credit to hire someone that will cost me money? WOW Can`t wait to get that money. Just a great idea, smart people up there in Washington.

The Dogfighter Returns

January 29th, 2010
9:46 am

High unemployment is going to be a new way of life . The country is broke and getting poorer every year.

The first two posts have said everything there is to say about the effectiveness of tax cuts.

Ron

January 29th, 2010
10:45 am

We’ve all been duped into thinking that there is a quick fix for everything. Want better sex then take a pill. Want to loose weight then take a pill. Want to sleep then take a pill. Want to wake up then take a pill. Want more hair then take a pill. Want to feel better then take a pill. The fact is that most of us realize that these are gimmicks that don’t work.

Now the politicians are beginning to realize that this unemployment thing is more than a twenty-four hour bug. It is a serious malady and they’re looking for an instant cure. Specifically, they’re looking for the magic pill that will put everyone back to work. Sadly, I don’t think there is a magic pill.

Frankly, we’re in this position because government, unions, and greedy business people decided to kill the goose that laid the golden egg. Over the past thirty years through legislation, regulation, negotiation, arbitration and greedy business deals we’ve have effectively killed the world’s greatest economic engine. There are no pills (taxes, incentives, credits) that can cure this quickly.

RGB

January 29th, 2010
11:25 am

Having seen few solutions suggested, may I offer some (which I’ve purloined from one of this country’s greatest treasures):

1. Fire all the czars (36 and counting) and end the practice of hiring them. If the President has 36 priorities then he has no priorities.
2. Propose a bill that actually cuts spending 2% every year for the next ten years and veto every spending bill until the requested bill is passed.
3. Congress should list their proposed cuts to achieve the 2% reduction in spending every year.
4. Across-the-board tax cuts, individual two levels: 10% up to a hundred thousand dollars a year, 25% for over that amount. Corporate tax rate: 15%. Presidents Kennedy and Reagan proved doing this increases revenue to The Treasury.
5. Repeal the Alternative Minimum Tax, the death tax, and capital gains taxes. This spurs confidence about the future, helps families keep small businesses, and promotes hiring.
6. Privatize General Motors and Chrysler, and that includes getting the unions out of ownership.
7. End TARP and the slush fund. Cut off all slush fund and Porkulus spending that has not been spent.
8. Lift all restrictions prevalent in interstate health insurance and implement real tort reform. Further, endorse Charles Krauthammer’s proposal to scrap the current medical malpractice system. Reducing unnecessary costs (defensive medicine) should be the first step to lowering health care costs thereby making health insurance more affordable and available.
9. Urge President Obama to repeal Executive Order 10988, which gives federal workers the right to join unions and bargain collectively. Unionized government employees have no competition, are not in danger of losing their jobs like their private sector counterparts, and have no basis for unionization.

There are no magic pills that will cure the economy but the borrowing and spending now being done by Congress and the President surely constitute a poison pill.

The Obama plan to quadruple U.S. debt (accumulated from George Washington to G.W. Bush) in 10 years means sure ruin for our way of life. He and Congress must be stopped.

Write your Congressman and Senators and tell them you’ll work to oppose them and provide financial support to their opponents if they increase spending one dime.

Vote for RGB

January 29th, 2010
12:38 pm

RGB – Thank you for reminding me that some people get it. Our government is only continuing to hurt us with their legislation and tax laws. They do not understand the consequences to their laws. Thanks for also inspiring me to write my congressman (who will probably only reply a generic response that will only frustrate me more – as in the past). .

Get Real

January 29th, 2010
12:49 pm

The president said he wants to increase double exports over the next few years and that would create 2 million jobs. From that statement one can assume that only 2 million Americans are affilliated with exports. There are 308 million Americans, I believe we need to analyze the need for the jobs all the other Americans are doing. Decades of Federal, state and local legislation have made it too hard to manufacure goods in America and we’re paying the price now. Until this is addressed it’s all down hill

RGB

January 29th, 2010
1:03 pm

Thank you for your generous comments.

You are correct about the generic reply. When I emailed my congressman via his “webform” I was asked to choose from a drop-down box the topic most closely corresponding to the subject of my letter. There was nothing pertaining to the economy or job creation. But there were choices pertaining to “GLBT”, “tobacco”, and even “animals.”

In my letter to my congressman, I wrote: “P.S. Of the “issues” listed on your web site, not one is related to the economy or jobs. But if I were a non-smoking GLBT, then you’d have me covered. This speaks volumes about your priorities, Congressman Lewis.”

Recently, I decided to provide modest financial support to candidates around the country who can help turn things around. Like-minded people are doing the same–and together we can get back on the right path. It’s painful to approach it this way because success comes slowly. But it’s even more painful not to do it.

There are millions of others like us out there and we will not be stopped.

NoTaxCuts

January 29th, 2010
1:19 pm

No, given them a tax cut or break will not create jobs. If you’re not bringing in the customers and making the money to pay for additional employees; I doubt if $2400 tax break is going to keep you in business.

People aren’t spending because they are unemployed or fearful that they might become unempoyed. I use to go grocery shopping every week, now I go every other week and only if necessary. If Kroger hires five new cashiers; I’m still not sure that I would go shopping any more than I do at this time.

I was much more in line with the money going to green jobs, like discussed last year. I beleive those types of jobs would have more results in the long run.

NJ

January 29th, 2010
1:29 pm

Simply giving tax cuts do not create jobs. At least giving tax cuts to those who are already well to do.

The only thing that creates more jobs, is more customers. No business is going to hire new employees unless hiring that employee will create more profit for the business. Thats simple Business 101.

This is why the Bush tax cuts, not only the largest in history, but as large as all tax cuts combined did not create jobs. Half of all the recipients of tax cuts got 100 dollars or less. The bottom 84 percent of all income earners got tax cuts that came to less than one percent of their incomes.

On the other hand the top 5 percent of income earners got 52.5 percent of the entire amount given out in tax cuts.

On the other hand high marginal tax rates do not necessarily harm job creation. In 1944 FDR raised the top tax rate to 94 percent and had almost full employment (1.2 percent unemployment) due to the war. After the war ended tax rates were dropped and unemployment went up. Until Truman raised tax rates from 84 percent to 91 percent. Unemployment dropped by fifty percent after this tax increase. In fact between 1947 and and 1973 the median household income rose by 2.7 percent every year while the tax rate never fell below 70 percent, which is twice the current rate.

Republicans have a platform based on a single economic policy which is that ALL tax cuts are good.
This is not the case. It really depends on who is getting the tax cuts. In an economy that is almost totally consumer driven, tax cuts that are given to those in the lower 84 percent create a lot more consumers than those given to millionaires.

Again Republicans were railing that the Clinton tax increases would destroy the economy. They did not. In fact those tax increases were recommended by one of the most conservative Comptroller Generals to ever head the GAO, Charles Bowker, a Reagan appointee. He recommended them to George HW Bush when Bush came into office. Bowker’s criticism of the Reagan adminstration was scathing and it was the only time in the history of the Comptroller Generals office that an incoming president was ever given such a report about the outgoing administration. Because Bush did not take this advise, a recession started. Clinton DID listen to Bowker and the result was a quick end to the recession of the early 1990’s and a booming economy.

Right now what we need is more of the same. Not an increase in taxation, but an increase in the top marginal rate of taxation. In order to avoid paying taxes, businesses will do what it takes to avoid paying those taxes. They will put it into raising employees salaries or in other ways getting money into circulation in ways that it will be spent on whatever goods or services those businesses have to offer.

The Bush tax cuts did the exact opposite, They put 1.8 trillion dollars into the hands of the wealthiest Americans who did not go out and spend it. They did what always happens when the top marginal rates drop. They invested it in the hottest sectors of the economy they could find.

Every drop in the top marginal tax rates ended up triggering a market bubble, recession or depression, largely because most of the tax cut money ended up in the hands of the top two or three percent, who after consuming a little, started investing speculatively, and in every case it was real estate speculation. This triggered the Great Depression. The Reagan tax cuts in the 1980’s triggered speculative investment in Real Estate Investment Trusts, based on commercial properties. By the time it was over, there were a lot of empty office buildings and complexes, strip malls, and so on. And no rents for any of the space available in these real estate ventures. The result was a market bubble and a market crash, the steepest since the Great Depression.

Same thing happened as a result of the Bush Tax cuts, a total of 2.48 trillion in tax cuts over ten years, 1.8 trillion given to the top five percent. Everyone blames subprime mortgages for the latest recession. But that is putting the cart before the horse. The money to give out those mortgages came from that 1.8 trillion dollars in tax cuts being invested in “mortgage backed securities”
Which simply means that investors were fronting the money for those subprime mortgages and collecting the monthly mortgage payments as income for from those investments. Had those tax 1.8 trillion dollars been given to the lower 84 percent rather than the top 5 percent, this recession would never have occurred. The bottom 84 percent would have spent the last five or six years spending thousands of dollars every year, rather than the few hundred they got from the Bush tax cuts. And of course the devil is in the details, the tax cuts to the bottom 84 percent were sunset by 2005. The average working class American got a few hundred dollars a year for two years. Even the sections of the Bush tax cuts directed toward small businesses, such as the special accelerated depreciation given in the Bush tax cuts, was sunset in 2006. After 2006 the only beneficiaries of the Bush tax cuts were the wealthiest 5 percent. They got a ten percent tax cut across the board for the entire ten years. Because these tax cuts are still going on, they also are adding more than 200 billion dollars a year to the 2010 deficit. 400.2 billion dollars of the Bush tax cuts, which were basically given by borrowing 2.48 trillion dollars over a ten year period make up the largest single part of the national debt and annual deficit.

PAT FROM ELLENWOOD

January 29th, 2010
1:38 pm

I am in agreement with most of what the others have said. However, back in the late 70s and early 80s they had what was called the CETA program. Unemployed workers got trained in growth industries, received a small stipend while being trained and than got hired. I know–because I was one of the individuals that went through the program–got trained in word processing and got a job working for a VP of a radio network. All of the The Feds could implement the program in the green industries which is a growth industry, the health care sector another growth industry and get people back to work.

PAT FROM ELLENWOOD

January 29th, 2010
1:40 pm

I am in agreement with most of what the others have said. However, back in the late 70s and early 80s they had what was called the CETA program. Unemployed workers got trained in growth industries, received a small stipend while being trained and than got hired. I know–because I was one of the individuals that went through the program–got trained in word processing and got a job working for a VP of a radio network. All of the folks in my training class got jobs. I left the training program early because they started sending us on interview prior to the class ending. The Feds could implement the program in the green industries which is a growth industry, the health care sector another growth industry and get people back to work. Throwing money at community banks is not the answer. They haven’t instituted any oversight or accountability and they would just take the money like the big banks and enrich themselves–how would this create jobs? Any stimulus of jobs should be coming through the Department of Labor. How come he has not given an infusion of money to them or the Department of Commerce who is directly involved in helping small businesses. The banks strategy is a joke.

RGB

January 29th, 2010
2:04 pm

As I said, you can’t reach everybody.

You folks who think that for your situation to improve somebody else has to suffer–you need a period of self-examination to determine why jealousy possesses you.

Corporate taxes in America are the second highest in the world (Japan has the highest). If you believe there isn’t a link between marginal tax rates–and risk-taking, productivity, capital investment, and job creation–then write your Congressman and propose that all corporations and businesses be taxed at 100%.

To maintain your credibility, insist that individuals be taxed at the same rate and that the IRS begin with you and your family.

Then the government “will have more money” with which to fund phony “job creation” programs. The government can take $10,000 from you in order to give you a $5,000 make-work job and employ 4 bureaucrats to manage the process. It’s really sad when somebody thinks that government has ever–ever–created a job.

Bob

January 29th, 2010
2:20 pm

Keep the Bush tax cuts and don’t worry about them going out and that will help the job situation. We’ll have more money to spend on goods and services. If I am worried about a hefty tax bill on April 15th, I can’t go buy a new car, a high def TV, and I can’t remodel my home. The businesses aren’t going to be able to hire new employees if they aren’t going t need them. I know of a government program one company already uses to hire and train new employees. At the end of the day (once they are trained), the company either replaces an older employee with the new hire or lets newly trained employees go.

The Dogfighter Returns

January 29th, 2010
2:26 pm

government create jobs ask the military complex, law enforcement, your congress representative, and any lawyer.

doing business with the government means cost plus 10%, you can’t lose even if you are an idiot. ask Blackwater/XE

L Brown

January 29th, 2010
2:32 pm

VOTE FOR RGB, RON & OTHERS
I am so glad to see there are others that really get it! Obama and company must be stopped or re-programed. Another thing is the IRS is bleeding folks dry. Current economic situations which caused lost jobs, lost homes, etc. also caused lots of large tax deficits. The IRS imposes more penalties, late charges and higher interest rates than any business, thus causing the honest citizen (some whom have never owed additional taxes before) to be in debt to the IRS forever. Stimulus funds and bailout dollars need to benefit the taxpayers/citizens directly.

joan

January 29th, 2010
2:38 pm

There isn’t a lot to be added to the excellent comments above, but I will say that the envisioned tax incentives for employers is a big red flag for fraud and graft, and in all likelihood employers will not “play by the rules”, so that will be even more money thrown down the big black hole.

Ron

January 29th, 2010
2:39 pm

These proposed and talked about government taxing and redistribution of wealth programs sound to me very much like pyramid schemes. You know the ones where you get super rich selling stuff to your family and who buddies who in turn or going to sell stuff to their family and buddies who are going to sell stuff to their family and buddies and in the end everyone is super rich from selling stuff to each others families and buddies. And, oh yea, you have to pay up front to get in on this once in a life time opportunity. The only people who get super rich are those at the top of the pyramid. The people who operate the pyramid. The only people who are going to benefit from these tax credit schemes are the politicians.

ATL Scouser

January 29th, 2010
2:57 pm

You need to have a functioning public sector that can facilitate economic growth in regards to:

-build transportation infrastructure
-identify and invest in cleaner and cheaper energy
-invest in education in order to maintain a well-trained workforce that can excel past our peers
-redevelop communities and develop new ones in a sustainable manner that lowers costs to the general public

Government has the ability to make these investments–which usually involve purchases of goods and services from the private sector.

Another aspect is health care reform. Currently health care expenditures comprise up to 15-20% of operational expenditures in both public and private sectors, which eats into a chunk of tax dollars, discourages businesses from hiring, and keeps wages down.

Needless to say that at this point, tax cuts are futile given our current low rate of taxation (including fuel and sales taxes as well). You simply cannot have a functional economy without an active public sector to make the necessary investments that the private sector is simply incapable of making.

On a side note, our high corporate tax rate in part subsidizes our low income tax rates–which are low when compared to peer nations. We can cut corporate taxes, but in reality the money would just come from elsewhere. So if we cut the corporate tax rate to boost jobs, then be prepared to pay higher personal income taxes. Further disinvestment in government will lead us down the road of becoming a banana republic.

RGB

January 29th, 2010
3:23 pm

“Further disinvestment in government will lead us down the road of becoming a banana republic.”

For some folks, government will never spend enough money.

Reach all the people you can, then defeat the rest.

Ron

January 29th, 2010
3:47 pm

ATL Scouser – High corporate taxes along with low personal income taxes subsidize burgeoning local, state and federal governments. Look around! Where is the concern here in Georgia? Keeping government employees on the job. And, oh, BTW, if there is any money left over we might just improve transportation. But first, we have to ensure our folks (government employees) are taken care of, period.

Over the past few months I’ve attended several meetings where leaders in this state talk about the crisis of helping the state with the budget deficit. No one, I mean no one has ever mentioned our crisis in unemployment. No one, I mean no one has ever mentioned the need to attract and grow business opportunities in Georgia. In their minds the crisis is keeping the state of Georgia bureaucracy intact.

Over the years we citizens have allowed politicians to keep, feed, nourish, and grow a BEAST. That beasts name is government. Over the years the beast has devoured our economic engine. It is still hungry and now we the people are on its menu.

RGB

January 29th, 2010
5:53 pm

Well said, Ron. Your observations about “leaders’” thinking on the state budget deficit really say it all. Your last paragraph powerfully describes the problem. Ironically, when the beast kills the economic engine, the so-called leaders have fewer dollars to direct toward their precious, vote-buying programs. It’s a double-lose.

In President Reagan’s autobiography, he said the only way to kill the beast is to take away its food supply–tax dollars.

BG7

January 29th, 2010
10:47 pm

What we really need is for the leaders of our state to be consistent. Come on, they’re considering a tax cut here, but then next week I hear they’re going to try to pass a increase in taxes on cell phone use. What, do they think small businesses don’t use cell phones? These guys need to get their act together–this tax cut is a great idea in this economy, but then why would they also pass a tax increase on cell phone use?

Capitalist

January 29th, 2010
11:59 pm

PASS THE FAIR TAX!!!! Currently the Corporate Tax rate in Communist China is 25%! Ours is 35%!! There are a number of countries where the Corporate Tax rate is 0%!! I own a company that if I incorporate in the USA I could be subject to a tax bill of $114 million. If I incorporate my company in one of these foreign countries my corporate tax bill will be $0! What would you do? This is on top of the enormous regulatory and labor costs in the USA. Passing the Fair Tax will allow many offshore companies to relocate to the U.S. and thus create many new jobs. If you are an individual in the lowest tax bracket, guess what? You take home 100% of your pay check. That is, the Gross not the Net. No taxes are taken out of your check! Think about how that would change your spending habits if you took home the Gross not the Net.

Additionally, ENFORCE THE 10th Amendment to the Constitution! Basically that says the the federal government can only do those things that are specifically named in the Constitution for them to do. Anything that is not specifically mentioned is left to the State or the Individual to do. This would eliminate about 50% of the current expense. Also, any government employee making 100k or more should immediately take a 20% pay cut. This includes all elected officials and Judges.
This is not an exhaustive list, but it is a start.

sharon

January 30th, 2010
1:34 am

Needed: A Tax plan that allows “planning.” Estate Tax MUST be addressed..If not, all the $ planning thus far invested will have gone “Down the Drain.” As survivor of business estb. pre 1900 & now run by 5th & 6th generation..future is precarious without estate law on which decisions are made…It should be 0$ on this most confiscatory tax law; however…let’s at least keep it as it was … with stepped up basis on assets….anything less will produce fiscal nightmare for existing estates or current planners.

Ludwig von Mises

January 30th, 2010
8:01 am

We can have growth and lower prices under a true gold standard.

HBN

January 30th, 2010
12:21 pm

RGB,

Your comments are right on. Please consider running for an elected office. We need leaders like you in every part of our government.

gordon cuffe

January 30th, 2010
1:12 pm

They dont need tax credits, they need to government to push the banks into releasing the vacant foreclosed houses faster.That way investors can buy the beat up homes at a discount and get guys working on them. There is job creation. Supplies will be purchased. More jobs created.
If someone out needs a discounted house, they can go to http://www.propertieswithequity.com

Veteran

January 30th, 2010
8:45 pm

My grandfather, my father, and I have all bled for this country and (I miss my dad and gramps dearly) this piece of mind, this “opportunity” to have a better life for our children. RGB gets it – THINK people THINK, our “leaders” care about re-election not about the real future (they are rich, thier kids will do fine). Number one priority should be ideas (outlined by RGB) and a law that makes a representitive’s salary and benifits the average of thier constituency (term limits will not work). I realize asking people to think in a society that does not value education may be a stretch BUT I can promise you that if 25% of this country (now at ~17 really) can not find work (many educated engineers scientists etc. and well armed) then terrorists (freedom fighters to some, it is all semantics really) 6,000 miles away will be the least of our worries.

Veteran

January 30th, 2010
9:14 pm

ATL Scouser should also realize that thermodynamically speaking, the earth is at tipping point. We (the planet) currently use 8% of the fossil fuels we burn for one thing and one thing only. Not to drive cars or anything mechanical, not to keep lights on (in other words not to provide an energy grid), not to “crack” the fuel into plastics, fibers, medicines, additives (I could go on forever here). In fact 8% (and growing rapidly) of the fossil feuls we burn are done so to do ONE thing, fix nitrogen (make fertilizer to the layman). Why? Because we all need to eat. Any economic model that grows every year is NOT sustainable. Could every single person on this planet have the “American Dream” (house 1/2 acre of land etc.) – NO WAY IN HECK, there are not enough resources.

Why then, are americans DYING to promote the “American Dream” around the world?!?!?!?!?!?!?!?!?!?!?!?!?!?!?!!?!?!?!?

I had better stop becuase this is personal, so I will leave you with a final thought. Guess who loses when we switch from a national economic engine to a world economy? When you are on top, their is only one way to go people. In the end, the laws of Nature will win, growth models will only work if the earth were getting bigger. Where are all the bright economists anyway? Oh, that is right, they went to wall street and stole my retirement and my kids college fund. They don’t care anyway as thier kids have big trust funds and mine are tough, resourceful, and know how to care for weapons. Hhhmmmmm.

Veteran

January 30th, 2010
9:21 pm

Ludwig von Mises

Again, there is no growth when all the gold has been dug up, so no the gold standard does not work (especially since a return to it would destroy ALL governments overnight and you had better be well armed – think Haitii all over the world). Thermodynamics will always win and any physist worth his weight in salt knows this.

LWG

February 1st, 2010
6:00 am

As the saying goes, “you can lead a horse to water, but you can’t make him drink it.” The ultimate goal for any company is to make money. The highest production expense is the employee. With the recession, employers were forced to reduce head count in order to survive. But that reduction did not necessarily eliminate the job function. It was simply absorb by the remaining employees that survived the cut. So now you have a “two employee” task turned into a “one employee” task. Once that door is opened, and an employer sees that, no matter how difficult, the task or job get done, there is absolutely no incentive for him to re-hire. Why should he? He has the potential to make more money using less employees performing the same jobs once the economy turns around. Tax credits, tax cuts, tax whatever doesn’t matter. You can’t force an existing company to hire if the company truly does not need to hire too survive and thrive. The best way to put the masses back to work is to create new jobs via new projects funded primarily by the government.

Alecia

February 1st, 2010
8:08 am

There are some business that have cut too far and need to rehire. They will benefit from the tax credit. If we really want to get jobs rolling our business environment needs to change. We can force education and training all we want. American companies are hiring skilled labor, such as Engineers, Bankers, and Medical Professionals from India. India cannot find enough workers for American companies and Home Depot in Mexico is making more money than the ops in the U.S. Both the Indian and Mexican economies are humming again.

Government jobs are not the answer. We need to actually create money. Gov. jobs are funded by taxes, not by producing a good and selling it. We need to lower the corporate tax, eliminate the brother’s keeper notion, and lower barriers to do business(off the wall enviro regs). Also, credit to small business has been nil over the past year. We need to get credit pouring again. However, banks do not want to lend in an environment where unemployment is rising(duh). Something needs to be done to force the hand of lending.

Alecia

February 1st, 2010
8:24 am

LWG-A company can benefit by hiring people that will help them bring in more money. Granted, the secretary, production workers, or mid mgmt. might not be replaced right away. However, there are actually positions which will help a company increase market share. If a company wants to increase its salesforce or Marketing Dept, there could be some benefit. An average salesperson produces profit that is 10x their pay. Doubt a group of gov. workers could do that. Also, as customer service declines, so do sales. Some of these companies are losing sales, because they cut their customer service too far. There is a tipping point where a company loses $$$ due to lack of service.

gatordowneast

February 1st, 2010
8:25 am

RGB has the correct approach. Most of his answers are common sense.

Unfortunately, most of our political leaders (especially those with no business experience) feel you can legislate or “bribe” employers to hire workers. They just don’t get it that if a business has a product, service, idea, that people want, need and can afford, the business will grow.

Veteran

February 1st, 2010
5:48 pm

Alecia,

Are you daft? You really think that “We need to actually create money”. Did you mean to say that we need to create new valuable commodites. The problem is that people have figured out how to push money around and make it bigger WITHOUT actually creating real value. This is the fundamental disconnect ( also why we need new REAL regulation) and the reason why the financial sector has gotten us into the mess to begin with. For example, home prices should not go up just because the financial “pros” says they should. People should be asking what has physically or logistically been done to increase the value of the home? I have a neighbor who is trying to sell his house. He took a second mortgage out when interest rates were low so he could redo a room in the basement and make a “football palace” down there. The problem is our neighborhood is not a high-end neighborhood. We have had a few break-ins etc. He has to get 190,000 for his house just to clear the debt. I’m sorry, but a redone room, several large screen T.V.s and a super delux wet-bar with kegorators does not increase the value of this house from 120,000 to 190,000. The bankers, wall street and corporate america have been shoving this mantra down peoples throats for years.

People in this country desperately need a reality check and desperately need to be reconnected as to what real value is. Manditory military service would go a long way towards this goal.

But my guess is that even those responding to this thread, still want a pill to make everything better. I would guess (especially of those finanancial nancies) that everyone in this thread wipes the kids butts for them, nevermind let them serve in the military.

Tell me I am wrong, go ahead, I dare you.

Viv

February 12th, 2010
7:11 am

Tax cuts for every rich person does not create jobs. Many of them stash their money in over seas banks and tax deferred plans. Come on the rich know how to avoid paying taxes and they also aren’t spending the money they got from tax cuts. Targeted tax cuts to those that produce jobs is what works. Bush tax cuts were part of the problem that caused the huge deficits.
Unfortunately many tea baggers have no clue that under Obama most of them will never see a single increase in their federal taxes. Meanwhile because of the deficit their local taxes will go up and school taxes and their parks will close and they have to pay more to go to the beach.
Their facts are wrong Federal tax rates are lower now than they were when Ronald Reagan was president for most middle class. Bush tax cuts did NOTHING for the middle class , now we see the result of his economy. Meanwhile they go to Switzerland and but their money in their Swiss bank account’s !
Obamas right get rid of the Bush across the board tax cuts for all the rich and do targeted tax cuts to those that produce jobs.
Of course people like Sarah Palin going to pretend she for everyday folks and want tax cuts – well heck everyday folks are gettign tax cuts under Obama and they didn’t get them under the republicans!