Would Lower Taxes for the Wealthy Create More Jobs?August 9, 2012 at 5:07 pm | Posted in Fairness, Presidential election | Leave a comment
Tags: Fairness, Romney
If you were one of the Koch brothers, or one of the Mars brothers, would lowering your taxes induce you to create more jobs?
I don’t think so.
You would be more likely to use your additional wealth to have an even more disproportionate influence on politics and policy.
But every additional dollar in the pocket of someone in the lower middle class would be spent to buy something. That would boost demand, leading to more jobs, which leads to more dollars in the pockets of those who need to buy things ASAP, creating a positive feedback that would increase the general prosperity.
John Hively’s blog shows how the increasing concentration of wealth has undermined our previous trajectory of increasing general prosperity, producing a negative feedback that has contributed mightily to the present scarcity of jobs. Fewer paychecks mean smaller tax revenues locally, statewide, and nationally, which contributes to the deficits that now also weigh us down. If the Tea Partiers really wanted to reduce the deficit, they would push for a wider and fairer distribution of income. See Hively’s August 8, 2012 post, and all three of the related blog posts whose links appear within that post.
The disingenuous tactics that the super wealthy use to try to eliminate the estate tax are described in http://www.citizen.org/documents/EstateTaxFinal.pdf .