Responses: 4
If a business owner pays less taxes, I suspect they would hire more people with those savings...more jobs for those that bring value to that business (which is an entity that solves market needs).
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Jobs are created by demand (and projected demand) for goods and services... not by profits. It is not unreasonable to believe that tax cuts for corporations will make my 401K will grow a little faster, it is unreasonable to believe that they will create jobs unless the tax cuts or exemptions are specifically crafted to provide more jobs. A good example of this might be the write off for interest on a home loan. By encouraging the rich to buy more homes, you are likely creating some construction jobs, by simply cutting tax rates you may be encouraging them to fly to the French Riviera for a few months. Some good statistics are in the link below.
http://www.faireconomy.org/trickle_down_economics_four_reasons
http://www.faireconomy.org/trickle_down_economics_four_reasons
Trickle-Down Economics: Four Reasons Why It Just Doesn't Work
We've all heard the claims that cutting tax rates for the richest Americans will improve the standard of living for the working class. Supposedly, top-bracket tax breaks will result in more jobs being created, higher wages for the average worker, and an overall upturn in our economy. It's at the heart of the infamous trickle-down theory.
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I will say this much under the current tax system those who are worth say 5 million plus most likely have an accounting firm that can ensure they pay as little as possible, so if you take all the deductions possible they most likely pay far less than the 35% they are bracketed in. Same for most corporations, they know how to get around paying taxes under the current system. If Trump implements a flat tax and eliminates enough deductions then most likely those in the higher tax bracket will actually pay more than they currently do.
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MCPO Roger Collins
Tax brackets mean little, the metric that counts is effective rates. An example is I fall in 33% bracket and an effective rate of about 14%. And I do not itemize.
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