Taxes are low. So where are the jobs?

Here are some facts that many Americans simply don’t want to hear and quite a few refuse to believe (via the Orange County Register):

While Republican lawmakers appear unified against tax increases and many Tea Party activists want existing rates rolled back, statistics consistently show that federal taxes are at a historic low.

For the past two years, a family of four earning the median income has paid less in federal income taxes than at any time since at least 1955, according to the Tax Policy Center. All federal, state and local taxes combined are a lower percentage of per-capita income than at any time since the 1960s, according to the Tax Foundation. The highest income-tax bracket is its lowest since 1992. At 35 percent, it’s well below the 50 percent mark of much of the 1980s and the 70 percent bracket of the 1970s. . .

The recession contributes to lower taxes because many incomes have stagnated or fallen, and fewer retail sales mean less sales tax. But low tax brackets and a series of special deductions are primary factors in the reduced tax burden.

Republican dogma holds that lower taxes stimulate jobs and, therefore, greater government revenue. If that were true, the current unemployment rate should be below 5 percent!

But, of course, that voodoo isn’t true — no matter how desperately some folks want to believe it. The proof is in the last 20 years. During the Clinton era, taxes were higher, jobs were plentiful and the budget was balanced. Clinton’s predecessor, George W. Bush, slashed taxes, started a tsunami of red ink and presided over the weakest era of job creation since World War II.
Those are facts, folks.

360 comments Add your comment

Tommy

April 18th, 2011
9:40 am

The top tax payers in this country, making an average of $345 million each, pay an average of 17% in federal taxes, thanks to loopholes and write-offs.

Where is the Tea Party outrage in that?

JKL2

April 18th, 2011
9:42 am

It’s hard to expand a business (create jobs) when the government is borrowing all the money to cover their out of control spending.

PS: increasing taxes is not a spending cut.

Sammy

April 18th, 2011
9:42 am

So Tucker is prepared to aruge against virtually every economist in the world that higher effective tax rates produce more jobs?
Not even Tucker is that slack-jawed, dumb.
Jobs in America declined substantially in the past two years with virtually no change in the tax rates and massive amounts of government spending. Guess that did not work either.

HDB

April 18th, 2011
9:43 am

With the GOP, it’s never been about creating jobs; it’s been a systematic shifting of the tax burden DOWNWARD so that the middle class disappears and only two class types remain: poor and rich! Right now…the rich get richer…the poor get poorer…and the middle class gets squeezed until it disappears!!

Tommy

April 18th, 2011
9:44 am

Sammy –

Had the substantial decline started just two years ago, then might have believe your false statement.

hobby

April 18th, 2011
9:44 am

I may be just a dumb redneck hick and not a Pulizer Prize winner, but I thought Clinton’s predecessor was George H W Bush?

Tommy

April 18th, 2011
9:46 am

“The Internal Revenue Service tracks the tax returns with the 400 highest adjusted gross incomes each year. The average income on those returns in 2007, the latest year for IRS data, was nearly $345 million. Their average federal income tax rate was 17 percent, down from 26 percent in 1992.”

Good thing that capital gains tax is only 15%…..

hobby

April 18th, 2011
9:52 am

tommy
What is the average income tax rate for the bottom 40% of wage earners? Uh, that would be 0%
This might be part of the problem!

Billyboy

April 18th, 2011
9:54 am

CT – your right again. The millionaires and billionaires should be keeping only 30% (paying taxes of 70%) not giving 30%, why are they so greedy. This is not fair!

Ragnar Danneskjöld

April 18th, 2011
9:54 am

Government has more ways to destroy the private economy than “high taxes.” The massive expansion of the Federal police forces, and the economic crimes they enforce, is now the greatest inhibition to job production. The solution – fewer economy-destroying laws, less government regulation – is one our democrat friends are highly unlikely to embrace. The republicans, on the other hand, see the obvious. 2012 will present the voters a clear choice.

Owl

April 18th, 2011
9:55 am

If you really want to know what’s going on in this nation go talk to somebody gassing up their car. You want need to cut and paste make it look like you’ve got a brain.

CopyandPaste

April 18th, 2011
9:55 am

Hey everyone,
How about we tax everyone 100% and let the government dish out all necessities to the public! Then it will be totally fair!

Please tax me more...

April 18th, 2011
9:58 am

sorry but my math is poor. isn’t 17% of 345 million, still over 58 million.

Gator Joe

April 18th, 2011
10:00 am

Cynthia,
It amazes me how the wealthy Right has successfully managed a propaganda campaign convincing some middle and low income Americans to support their tax policies, which in reality shift the costs of running the country down to them. If I earned 250K, or more, yearly I would willingly pay higher taxes to insure children are educated properly, people have decent, affordable health care, and people don’t go hungry.
The followers of the Right may not wish to live in the America they are trying to bring about.

DebbieDoRight

April 18th, 2011
10:02 am

So Tucker Sammy is prepared to aruge against virtually every economist in the world American History of the past 10 years that higher effective historically low tax rates [ADD did not ] produce more jobs?
Not even Tucker Sammy is that slack-jawed, dumb.
Jobs in America declined substantially in the past two eight years with virtually no change in the tax rates and massive amounts of government spending [ADD - Medicare Part B, Two Wars, Bush Tax Cuts, Three new government departments established {Dept. Of Homeland Security, isn't that the FBI?, etc.}]. Guess that did not work either.

DebbieDoRight

April 18th, 2011
10:08 am

HDB:With the GOP, it’s never been about creating jobs; it’s been a systematic shifting of the tax burden DOWNWARD so that the middle class disappears and only two class types remain: poor and rich! Right now…the rich get richer…the poor get poorer…and the middle class gets squeezed until it disappears!!

It’s called “How To Create A Third Word Oligarchy 101″…..it’s very popular in countries like Boliva, Brazil, and Indonesia.

hobby

April 18th, 2011
10:10 am

Debbie
Medicare Part B started in the 1960’s

TBone

April 18th, 2011
10:11 am

Tax rates are but one component involved in the general economic malaise. I think all Americans that make a buck need to pay into the system and support this bloated government. I think the damage has been done to particularly the manufacturing sector by over-regulation. EPA, OSHA and DOT ar but a few of the impediments to job creation. It took some 30 years of a little at a time but the regulations had their desired consequence for liberals. They removed the dreaded manufacturers from our landscape. Now y’all will beat up on the oil companies and Walmart an wonder why no jobs are being created.

Russ555

April 18th, 2011
10:13 am

Supply side economics has never worked. Just an excuse to lower taxes on the top one or two per cent. Voo Doo is the proper term for it.
The stimulus has worked. And there are more things that can be done. But supply side is not one of therm.

DebbieDoRight

April 18th, 2011
10:18 am

Ooops that’s Part “D” . Thanks!

tybee sun

April 18th, 2011
10:19 am

Hmm. Not sure what to make of this CT. I am not disagreeing with your thoughts on taxes and jobs, however, please give us your ideas on how to manage/fix the issue. You all to often raise a point then bash the right. Offer some viable solutions. All I get from this column is: Right evil (as always), Rich evil (as always), Government knows best (as always).

Keep Up the Good Fight!

April 18th, 2011
10:22 am

DebbieDoRight

April 18th, 2011
10:23 am

TBone: I think the damage has been done to particularly the manufacturing sector by over-regulation. EPA, OSHA and DOT ar but a few of the impediments to job creation. It took some 30 years of a little at a time but the regulations had their desired consequence for liberals.

Hmmmmm regulations have done all that huh? Well, then I know you’d just LOVE to have a nice peanut butter sandwich or how about some salmonella tainted tomatoes? OR just for fun, how about going down in the mines, work 10+ hours in unsafe conditions, have the mines cave in on you, and then have your boss say “Them’s the breaks sonny”, when you come out crippled, that is if you do come out alive, and then the boss fires you for not being able to work, or laying down on the job, or some such righteous pro-owner anti-labor nonsense? Yep, let’s turn the clock back to those good old days!!! :roll:

Hootinanny Yum Yum

April 18th, 2011
10:23 am

“MISSION ACCOMPLISHED”

Said current Energy Secretary Steven Chu in an interview with The Wall Street Journal in September 2008, “Somehow we have to figure out how to boost the price of gasoline to the levels in Europe.” At the time, Mr. Chu directed the Lawrence Berkeley National Laboratory in California.

Said former Obama economic adviser Robert Reich on January 7th, 2009, in congressional testimony regarding economic stimulus, ”I am concerned, as I’m sure many of you are, that these jobs not simply go to high-skilled people who are already professionals or to white male construction workers…I have nothing against white male construction workers, I’m just saying there are other people who have needs as well.” At the time, Reich was an economics professor at Berkley in California.

I guess these guys can pretty much say, “MISSION ACCOMPLISHED”.

Hey. We can lower taxes all we want, as long as the perception exists among business leaders that our national leadership is focused more on social engineering and making American more like Europe; they are going to sit on their hands (and cash).

Keep Up the Good Fight!

April 18th, 2011
10:23 am

It’s true that the top 1 percent of wage earners paid 38 percent of the federal income taxes in 2008 (the most recent year for which data is available). But people forget that the income tax is less than half of federal taxes and only one-fifth of taxes at all levels of government.
________________

Same source. SO let’s stop the faux facts about 1/2 the country not paying taxes.

detritusUSA

April 18th, 2011
10:23 am

Regulations did not remove manufacturing from our landscape. Corporate and investor greed is the real reason.

Jack

April 18th, 2011
10:25 am

There are jobs: just no takers. I know for certain that a job was advertised at $15k for a year’s farm work and no one answered the ad.

Peadawg

April 18th, 2011
10:29 am

3 articles in a row that I agree with Cynthia…creepy.

GOP barking points

April 18th, 2011
10:34 am

Yeah so it’s been 4 months, you mean the GOP fairy dust hasn’t instantly turned the economy around as promised? Just wait til next Nov…

Keep America Stupid, or, John Wayne's male cuddle buddy

April 18th, 2011
10:37 am

we need to give them more time. 4 months is not a feasible amount of time to expect results, no matter what was promised Please just give them at least 9 more years and I assure you there will be change. Not to worry, the jobs will be here after 9 more years and more tax cuts for the rich.

I have swampland for sale in Los Angeles. :-)

PMC

April 18th, 2011
10:43 am

However, if it’s not true…. where are the jobs in Detroit; Illinois; New York; California; New Jersey….

The logic works fine, currently the economy of most of the entire world is in the toilet.

The issue of course is that nothing is ever as simple as bomb throwers on the right and left like to try and generalize.

itpdude

April 18th, 2011
10:44 am

8 years of W and we think Obama botched things the very day he took office. Has Obama raised taxes? No, he extended the W tax cuts. Payroll taxes have been cut.

Yet we still have a crummy economy. The GOP bought into the voodoo economics GHW Bush described in 1980. They bought into and have not moved away from it despite its poor track history.

But oh well. Heckuva job, GOP.

DebbieDoRight

April 18th, 2011
10:44 am

sorry but my math is poor. isn’t 17% of 345 million, still over 58 million

“We don’t pay taxes. Only the little people pay taxes…” Leona Helmsley

Mr Right

April 18th, 2011
10:44 am

Only a lib would believe that raising taxes creates jobs!! Please explain how !

PMC

April 18th, 2011
10:45 am

The poorest and richest people are always fairly equal when it comes to how the system benifits them. The people in the middle will always be the most effected negatively by tax burden.

Juan Carlos

April 18th, 2011
10:48 am

There are jobs: just no takers. I know for certain that a job was advertised at $15k for a year’s farm work and no one answered the ad.

Ay Caramba!! 15K a year!!! I’d LOVE a job like that!! Mia espousa and I can work the job together that way the owner can save big time!! Just give us the address and……and……..and……. oh wait, we can not work in America legally………………………never mind………..

Dr. Pangloss

April 18th, 2011
10:49 am

Typo, Cynthia. You said “predecessor” when you meant “successor.” Proofread, proofread.

Mr Right

April 18th, 2011
10:49 am

detritusUSA

April 18th, 2011
10:23 am

Regulations did not remove manufacturing from our landscape. Corporate and investor greed is the real reason.

Unions Only one word needed!

hobby

April 18th, 2011
10:49 am

Detritus–Regulations did not remove manufacturing from our landscape. Corporate and investor greed is the real reason.

yes those evil corporations and investors want to make a profit.(HORRORS) When overregulation increases costs, and profits (EVIL!) suffer, The jobs go somewhere else. It is not greed, it is sound business practice.

Darko

April 18th, 2011
10:49 am

Tucker, if you think taxes are too low, you can always pay more than the minimum shown on your return. But I’m sure you REALLY mean they are just low for those making more than you.

Jimmy62

April 18th, 2011
10:50 am

I love how you can totally ignore the entire housing/mortgage debacle, as well as the bailouts and such when you make these pronouncements. You can’t ignore the entire catalyst for the recession and job losses. And housing? Well we know why you aren’t talking about that. Because Democrat policies and Democrat leaders were as much responsible for it as friends of Democrats like Angelo Mozilo. And we can’t ignore the GOP, who basically allowed Goldman Sachs to run our economic policies, and the Dems continued that basic policy.

So what you saying is “true” only in the sense that it’s not an out and out lie. It’s just ignoring 90% of the story. Dishonest to say the least. About what we’ve come to expect from a partisan hack like Cynthia.

sport

April 18th, 2011
10:52 am

CT – income tax just is one of a hoard of taxes some of us pay, funny how that didn’t make it into your theory on lower taxes equals less jobs. CT Economics Aptitude Test = FAIL.

Accounts Receivable Tax
Building Permit Tax
Capital Gains Tax
CDL license Tax
Cigarette Tax
Corporate Income Tax
Court Fines (indirect taxes)
Dog License Tax
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel permit tax
Gasoline Tax (42 cents per gallon)
Hunting License Tax
Inheritance Tax Interest expense (tax on the money)
Inventory tax IRS Interest Charges (tax on top of tax)
IRS Penalties (tax on top of tax)
Liquor Tax
Local Income Tax
Luxury Taxes
Marriage License Tax
Medicare Tax
Property Tax
Real Estate Tax
Septic Permit Tax
Service Charge Taxes
Social Security Tax
Road Usage Taxes (Truckers)
Sales Taxes
Recreational Vehicle Tax
Road Toll Booth Taxes
School Tax
State Income Tax
State Unemployment Tax (SUTA)
Telephone federal excise tax
Telephone federal universal service fee tax
Telephone federal, state and local surcharge taxes
Telephone minimum usage surcharge tax
Telephone recurring and non-recurring charges tax
Telephone state and local tax
Telephone usage charge tax
Toll Bridge Taxes
Toll Tunnel Taxes
Traffic Fines (indirect taxation)
Trailer registration tax
Utility Taxes
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft registration Tax
Well Permit Tax
Workers Compensation Tax

Napster

April 18th, 2011
10:56 am

@Jack…So you believe that you can support yourself on $1152 a month before taxes? I assume the person making that salary should become comfortable with eating Ramen Noodles, using bus passes, shopping at Family Dollar, and embracing abstinence because the cannot afford anything else after rent and utilities.

Not at the Trough

April 18th, 2011
10:56 am

Union pensions and benefits have crippled American manufacturing, and most American companies off shore labor because they can get it cheaper, faster, and usually more educated. I can’t blame a profit making company from trying to make a profit, but I suppose you can. The rich already pay the lion’s share of the taxes collected in this country. We need to do something about the trade regulations, and other of the bs type regulations on companies in the U.S. which had the “unintended” consequences of crippling many industries.

hobby

April 18th, 2011
10:56 am

Dr Pangloss
I don’t think it was a typo—-she doesn’t know better
another product of EEOC

marc

April 18th, 2011
10:56 am

until we balance our trade deficents……it’s all cross talk and calculated opinions anyways..that said….if our political parties really wanted to solve the deficent issue….they would fund MIT to figure it out….really figure it all out…… and the American public would agree to do whatever they recommened, period. See the problem?..we have enough brain power…we just don’t have the will….individual citizens would rather be right….or know the other person was wrong..than get the problem fixed…it’s laughable.

Obama is over

April 18th, 2011
10:58 am

In the early 70’s when the highest nominal tax rate was 91%, the government was not able to collect more than 8% of GDP in the form of taxes. The current rate is 7.8%. Only twice in the past 100 years has the Federal government been able to collect more than 8%- right after WW II, and during the internet bubble of the early 90’s when the stock market was being fueled by dot-com stock options. The income tax rate does not matter, it is the right offs and special structures that allow people to game the system. The entire tax code needs to be scrapped and made more simple. Of course, lobbyists, union reps, and other special interest groups make their living by preventing that simplification. By the way, Obama’s lack of substance in his tax speach last week forced Standard & Poors to place all U.S. debt on negative credit watch this morning. This will cost all of us money in the form of higher mortgage rates, credit cards, auto loans, etc. The President needs to show some leadership beyond partisan name calling, or get out of the way.

gatorman770

April 18th, 2011
10:58 am

“detritusUSA, April 18th, 201110:23 Regulations did not remove manufacturing from our landscape. Corporate and investor greed is the real reason.”
It’s clear you must be a democrat since you conveniently left out union/labor greed, which is one of the main reason so many jobs have moved to overseas locations by the greedy corporations urged on by the greedy investors who trying to get some reasonable return on investment on the money they have put in their 401K, IRAs, etc.

TBone

April 18th, 2011
11:01 am

@ DebbieDoRight So your answer to any and all societal ills is more government? You think maybe EPA went a little overboard with its CO2 regulations; obviously not. I worked in several industries that could not afford to compete and subsequently left this country to do business. Is that corporate greed or good business sense? You get stuck in the eye with a sharp stick and don’t really want to come back for more. Yeah that stimulus worked great!

Senior Citizen Kane

April 18th, 2011
11:03 am

I keep reading about the balanced budgets of the Clinton years. Can anybody guess why? Anybody?