CUTTING TAXES HAS NEVER CREATED AN AMERICAN JOB

Those on the right only know how to govern by giving tax cuts, regardless of whether the cuts actually help the average American.

…As usual, the far right is following their leaders like sheep.

I am getting so tired of listening to the blow-hards in Congress such as Speaker Boehner and then Minority Leader McConnell trying to sell the concept that "Cutting taxes creates jobs."

I have been in management of, and have owned small businesses, in fact I own one right now. Never have I said or thought that having lower taxes would be what was needed in order to hire a new employee.

Anyone that knows anything about what it takes to grow a business knows that only one thing can influence the hiring of more personnel for either a small or a large business venture. That one item is current or anticipated increases in the, "demand for the product or service".

As a perfect example, Apple Computer has added 12,000 employees over the past two years. And why did they do that? Well, it had nothing to do with getting a corporate tax cut. The main reason for hiring thousands of new employees was that they have sold millions of their new iPhones, iPads & iPods. The demand for these products, that has continued to increase, is the one and only reason to hire. I can guarantee you that in their top management meetings it was never mentioned that , "Gee, if our corporate tax rate was lower, we could hire a bunch more employees!"

This same situation applies for all small businesses.

As business improves for a small business, the first move is usually for the management to spend more of their own personal time in supporting the business. As the business continues to increase, the owner / manager agrees to use more over-time pay for his current employees. When that approach begins to stress out the current work force, perhaps the business will either sub-contract some of the work or temporary workers may be added. If the business continues to maintain this business increase, there is then a possible increase in the number of direct employees and sometimes an additional increase in the size of the business facility itself.

At no time did the business management make any decisions on hiring new employees based on the businesses´ tax situation.

I do agree that for a business to have reasonable tax policies is important to the overall business operations. This is especially true when one considers the latest tax credits that will now allow smaller businesses to offer cost effective health care coverage due to the Affordable Health Care Act.

But the past government de-regulation that allows large corporations to not pay their fair share of taxes is not what the economy nor the business community needs during a recovering economy. Be aware that due to the tax loop-holes, today´s businesses only support 7% of the cost of our government. Thirty years ago they supported over 20% of that cost.

But for some strange reason, this approach is all the Republicans have to offer for every situation. They say, "Let´s give giant tax cuts to the top 2% of the wealthiest Americans and let´s cut all the benefits for veterans, seniors, the working poor, and all of our children´s educations." They do all of this because even though they can site not one example of proof, they only want to offer tax cuts for their so called and bogus, "job creation plans".

Did you know that due to the GOP management decisions of the last 10 years, the percentage of American children living in poverty is currently the highest in the history of this nation. Today, over 20% of American children are considered as, "living in poverty".

As I said, cutting taxes does not create jobs. Never has, never will. And the non-partisan Congressional Budget Office (CBO) states that the tax cuts and cut benefits as currently recommended by the Republicans will cost the nation a loss of 700,000 US jobs, both public and private. And if this happens in the US, it could also turn the economic recovery around and throw the country (and the world) into another recession or even a deep depression.

And with another election coming in 2012, that´s exactly what the GOP wants to happen. They don´t give a damn about the average American worker. If you don´t make at least $250,000 a year and donate to the GOP, they could care less about you and your family.

So when it comes to who is supporting the American middle class, just keep your eye on the Republican governors now running Wisconsin, Michigan, Ohio and Indiana and you will see who supports the wealthiest top 2% and who supports everyone else.

Copyright G.Ater 2012

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