Jobs and the Big Bush Tax Cut Bamboozle

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I have been waiting since the Reagan administration for the trickle down effect to occur. Even after Recovery and Reinvestment capital they still haven't started hiring and some of the biggest benefactors of our tax dollars that were there to help them after they invested the money in the Casino on Wall Street and the other boondoggles we pulled them out of, many of them have been buying foreign verabonds instead of hiring people like the money was intended. What we have in this country is called UNLIMITED GREED. Nafta sent our jobs overseas while the big money people gave themselves bonuses for loosing all of our money. The idea that one man or company in fifty is going to trickle down enough for supply side spending to work is ridiculous. That scenario only works if everyone is working, employment increases, and the wages increase at the same rate as the cost of living increases. Businesses were firing many of their staff and trying to get one guy to do three people's work. In most cases it didn't work.

Arizona Mildman of AZ 10:43PM August 25, 2010

Oh and Reuters reported "the Obama administration expects to generate about $678 billion over 10 years" from the increase on the top two, not 830 billion.

Greg of TN 7:20PM August 23, 2010

To those that repute this article, please state facts that support you reasoning. I would like to see some, I googled the theory that small businesses make up such a high percentage of the top 2 percent when I McConnell say it, because it did not seem logical from the small business owner that I know. I could not find any facts that supported that assumption. If you have any, please share. It does sound compelling, if it's true.
A side note, coming only has one M.

Greg of TN 7:14PM August 23, 2010

The problem is that small businesses do not benefit from the Republican desire to extend the Bush Tax cuts.
In fact the over the last ten years America has become the second most small business UNFRIENDLY economy in the developed world with only 7.9 percent of our businesses being in the small business sector. Only Luxembourg has a worse record on having a tax structure that is worse when it comes to being small business friendly.
98 percent of that small business sector does not earn enough to benefit from the Bush tax cuts, because their income is less than 250,000 dollars a year.
The middle class tax cuts given by Bush expired at the end of 2005 and the small business expensing benefits given by the Republicans sunsetted in 2006.
For two years, small businesses were allowed to deduct up to 100,000 dollars in reasonable business expenses, and this was reduced down to 25,000 dollars in 2006 to it's pre tax cut rates.
The only people who will benefit from retaining the Bush tax cuts are the wealthiest two percent of corporations which barely create 30 percent of the jobs. Its that 7.9 percent of the small business sector that creates 70 percent of American jobs, and they have not benefited from the Bush tax cuts for more than 5 years now.
Thats the basic BS being shoveled. No small businesses will benefit from extending the Bush tax cuts. Some Republicans have dropped this sham entirely and simply approve of giving the richest two percent almost a trillion dollars, all of which will have to be borrowed.
There is no historical evidence that giving this small group tax cuts will create a single job. In fact the very notion that giving tax cuts to the rich creates jobs violates every principal taught in business 101 classes. You only create a job when you are doing enough business to pay the cost of that job as well as create a little profit along with it.
This does not happen by giving the rich tax cuts.
We are a consumer economy. The more money you give to people in the lower brackets, the more consumers you create. Unless you are building yachts and mini mansions, you are not going to see much benefit in giving a millionaire 100,000 dollars more of a tax break. That millionaire is not going to go to the McDonald's drive up and buy 100,000 Happy Meals.
History shows that giving tax cuts to the wealthiest two percent invariably results in a speculative market bubble in SOME sector of the economy.
Because the rich do not take that money and hire new employees, nor do they use it to improve an existing business. They go to their investment broker and try to invest in some hot sector of the economy which will return 15-20 percent, not the five percent plus the sweat involved in starting and running a business.
Even the Economist over at Merill Lynch blamed the recent economic recession on a "liquidity drive bull market".
Simply put the Bush tax cuts fueled the mortgage based derivatives crash.

NJ of GA 7:50PM August 17, 2010

Question for the usefull idiot from Mt. If what you sat is true , everything comming down the pike doesn't matter , what's holding economic growth back ? Small and big businesses don't care about higher taxes , more goverment controls and all , what's the hold up . They know it's comming , if they don't care , what are they waiting for ?
Answer please , if you can .

Hunter of WI 5:42PM August 16, 2010

Great post.
Your fact-based assessment shows how laughable the argument in favor of another additional $1 trillion tax break for the top 2% of income earners is. Small businesses here in Montana are saying the same thing: 97% of small businesses aren't impacted by the marginal rates over $250,000 and even the people earning over $250,000 per year get a sizable tax cut when the 2001 tax cuts are extended for 98% of Americans.
That won't convince people who are only concerned to see how low they can get taxes on the wealthy, but it at least shows the motivation behind the ad hominem and non sequitur comments dropped by the trolls.

Jason of MT 1:43PM August 16, 2010

And more goverment spending , raising taxes , Obamacare , cap and trade whatever the left is doing is working so well .
Those evil small business people . Lets just replace them with big goverment and more goverment employees , you moron . Where do you people come from ? I'm really sick of your brainwashing , propaganda attempts to fool the American people .

Hunter of WI 12:12AM August 15, 2010

While you consider the arguments put forward in this essay also consider that, from its own website, "The Center for American Progress Action Fund is a progressive think-tank dedicated to improving the lives of Americans through ideas and action. We are creating a long-term, progressive vision for America—a vision that policy makers, thought-leaders and activists can use to shape the national debate and pass laws that make a difference.
"Our mission is to transform progressive ideas into policy through rapid response communications, legislative action, grassroots organizing and advocacy, and partnerships with other progressive leaders throughout the country and the world.
"The Center for American Progress Action Fund is headed by John D. Podesta, former chief of staff to President William J. Clinton and a professor at Georgetown University Center of Law."
Really tells you all you need to know - too bad the author didn't mention any of this in his essay.

PR 1:30PM August 13, 2010